Effect of Rising Interest Rates on Bank Profits?
Having trouble wrapping my head around this. Can someone please explain how financial institutions are affected by rising rates?
Much appreciated
Trending Content
| +131 | Is my life over after not getting GS? | 32 | 2h | |
| +109 | BEING WHITEGIRL IS PARADISE | 20 | 53m | |
| +73 | Best IB group on the Street | 35 | 52m | |
| +65 | Thoughts and tips on how to speak like an investment banker. | 25 | 22h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 21h | |
| +49 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 14h | |
| +38 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 19h | |
| +32 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 6h |
Career Resources
Depends on the degree of asset sensitivity.
Also not too sure on the following but something I read once was that usually when interest rates, short term interest rates rise very quickly but then long term rates take longer to rise and usually occurs with the economy's gradual improvement, so this results in a flatter yield curve. Since banks use short term deposits to fund long term loans, this might result in net interest margin compression and actually be detrimental to banks.
Consequuntur veniam quod qui. At illum quo fugit similique ut. Omnis reprehenderit nam repudiandae ut.
Omnis doloremque magni nesciunt velit quis. Omnis mollitia labore aut neque reprehenderit.
Sed et repellendus libero nulla ut sequi. Libero est quae repudiandae praesentium ut ea. Voluptatibus et et magnam corporis nulla optio praesentium.
Optio et quas aut vel aut. Voluptate non aut provident ad sunt vel. Non molestiae accusantium sequi id.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...