Bank portfolios flush with long-term assets exposed to interest rate risk as rates rise
Narrow net interest margins and modest loan growth are making it difficult for banks to increase revenue, prompting them to reach for yield by stocking up on longer-term assets, Federal Deposit Insurance Corporation (FDIC) chairman Martin Gruenberg said yesterday, adding that this shift leaves lenders more exposed to interest rate risk as rates rise.
Commenting on second-quarter results for FDIC-insured institutions, featured in the FDIC's Quarterly Banking Profile report published yesterday
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