Research

Is This Time Different: How Are Banks Performing during the Recent Interest Rate Increases Compared to 2004-2006?

Anya Kleymenova, Lori Leu and Cindy M. Vojtech, Board of Governors of the Federal Reserve System (FEDS Notes) · 2024

Bank coverage, equity research and FIG interviews all turn on how rising rates feed net interest margin. This note walks through both sides of the balance sheet with real data.

• Banking
• Macro and rates

1 idea from this research

• FrameworkBanking

  Net interest margin is made on the deposit side, and deposit betas say how

  A bank's margin in a hiking cycle is decided by how slowly it reprices its deposits, measured as the deposit beta.

  Bank earnings, FIG coverage, and any interview that asks how rising rates affect a bank.