Banks Are Learning To Live With Low Interest Rates

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Rupert Hargreaves
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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…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk