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> except for the fat bankers QE has been horrific for banks. Net interest income has collapsed. it's less pronounced in the US, but in Europe where central ban
by retube 7y ago
> except for the fat bankers
QE has been horrific for banks. Net interest income has collapsed. it's less pronounced in the US, but in Europe where central banks have taken rates to 0 (or below) bank profits have all but been wiped out. Take a look at the share price of any European bank since 2008
- thedudeabides5 7y agoQE and low rates has been bad for the banks, in a perspective of having kept them all alive. Think about the Euro crisis as another example. Zero rates and ECB buying all the sov and fin debt bailed out banks that would have gone under. If 30% of the banking system collapsed, then surviving institutions would probably have profitability consistent with historical rates. But keep everyone alive, and bring rates to zero, and you squeeze margins both with excess competition, and compressing the diff between the rates they lend and the rates they borrow.