net interest margins

Since the Global Crisis, interest rates in many advanced economies have been low and, in many cases, are expected to remain low for some time. Low interest rates help economies recover and can enhance banks’ balance sheets and performance,…

With two recent Fed governors - Tarullo and Brainard - expressing a need for caution with normalizing Fed policy, I wanted to break down how I tend to think about monetary policy and its affect on resource allocation and private portfolio…

US equity markets are continuing to price in higher premiums for bank shares relative to the overall market. The increased steepness of the yield curve will mean higher net interest income, as banks borrow at historically low rates from…

The treasury curve has steepened materially over the past few weeks, driven by Bernanke's seemingly hawkish statements. One group of companies that will benefit from this adjustment is the banking sector.

According to an analysis by Reuters, small and medium-sized banks in the US have started to take on risk as the squeeze in net interest margins is beginning to hurt profitability. The goal is to boost returns despite the low-interest rate…

On Christmas Eve, the Wall Street Journal had two interesting articles on the credit situation in the U.S., one from the banks' perspective and one from the households' perspective. In general, the data were positive but I believe the…

This is a continuation of yesterday's post on the outlook in the banking sector. Two years ago, I said that net interest margins at banks would get crushed by the Fed's keeping interest rates low because it would cause the yield curve to…

Two years ago, I noted that the steep yield curve produced by the Fed's policy accommodation would give way to a flatter and more treacherous yield curve environment as a weak recovery continued. The Fed would see the weak recovery as a…

I wrote a blurb about Ray Dalio yesterday afternoon based on his talk at the Council on Foreign Relations. And I always enjoy Ray Dalio's perspective because the macro framework he uses is based on debt and credit stocks across business…

The following is an excerpt of an article written for the Dallas Fed this month by William R. White, a well-known Canadian economist who served as Chief Economist for the Bank of International Settlements until 2008 and was also one of the…