Flattening yield curve increased retail banks’ profits – Chicago Fed
The results reflect a change in banks’ business models after the financial crisis, researchers say
The recent flattening of the yield curve has increased retail banks’ net interest margin, and lowered that of wholesale banks, an economic letter from the Federal Reserve Bank of Chicago says.
In the letter, researchers Thomas King and Jonathan Yu examine the effects of a flatter yield curve on retail and wholesale banks’ profitability. They compare the effects to similar yield curve flattening episodes, including from April 1994 to June 1995, from May 2004 to February 2006, and from December
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