Banks Are Learning To Live With Low Interest Rates

It is generally believed that higher interest rates are better for banks and, as a result, as the Federal Reserve tightens monetary policy, banks will be better off because their net interest margins (an indicator of the difference between what banks bring in and what they pay out in interest) will also increase. Negative Interest Rates Are An Opportunity There has been plenty of comment and analysis on this theme over the past 12 months as the Fed becomes more hawkish. One estimate highlighted in the International Business Times, released last September before the Fed’s first 25-basis-point increase; the top…