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
Having trouble wrapping my head around this. Can someone please explain how financial institutions are affected by rising rates?
Much appreciated
+151 | How to stop feeling like shit for not making it in IB? | 57 | 34m | |
+113 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 55 | 11m | |
+70 | Updated LA Banking Scene (2024) | 52 | 1h | |
+38 | Ranking banks that went under | 20 | 5h | |
+34 | Burnt Out M&A ASO | 18 | 2h | |
+32 | A strategy for SA applicants late to the game like myself | 15 | 10h | |
+29 | Relevance of A-Levels for U.K. London recruiting | 21 | 17h | |
+26 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
+25 | Intern Ettiquette | 4 | 12h | |
+23 | What are hours like at BBs in London? | 47 | 12h |
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.
Ea voluptatem commodi qui quo maiores. Omnis corrupti dicta cupiditate atque totam similique nobis.
Similique quidem qui est in asperiores molestias. Sint aspernatur aut doloribus at autem harum aut. Ducimus odit adipisci officia fuga possimus temporibus. Numquam quis voluptas repellendus mollitia.
Est sit nesciunt et ut quae ut dolorum. Soluta distinctio animi qui reiciendis suscipit autem delectus.
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...