Five factors shape the impact of low rates and flat yield curves on bank margins
June 10th 2020 (06.06 mins)
Sean Marion and Louise Lundberg of the Financial Institutions team discuss the five key factors that make banks more or less vulnerable to persistently low interest rates and flattening yield curves.
Flat yield curves are key threat to bank margins as rates stay low for longer
This report explores the challenges of “lower for longer” rates for banks, and sets out how we assess the impact on their net interest margins (NIMs), a key component of their profitability.