Financials Face Low Loan Growth, Low Interest Rate World

A new report form Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) takes a look at one of the worst environments that major U.S. banks might have to deal with in the coming year, and in reality are dealing with right now. A report from analyst Matt O’Connor takes a look at a situation where both interest rates and rates of loan growth stay at lows for an extended period of time.

O’Connor then subjects the world’s biggest banks to tests based on this environment in order to figure out which institutions will benefit if the Federal Reserve’s monetary policy is both continuous and ineffective. The first thing to remember, however, is that this is the...