LIBERTY STREET ECONOMICS How Do Interest Rates (and Depositors) Impact Measures of Bank Value? Stephan Luck, Matthew Plosser, and Josh Younger
The rapid rise in interest rates across the yield curve has increased the broader public's interest in the exposure embedded in bank balance sheets and in depositor behavior more generally. In this post, the authors consider a simple illustration of the potential impact of higher interest rates on measures of bank franchise value. |
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