Business

Bank shares are not appreciated


Rate of increase already good for bank stocks in the past. At that time seems to have ended—So now. If ordinary investors know anything about bank stocks, they are probably a market sector can benefit from higher interest rates.

But this conventional wisdom is based on a number of assumptions. First, the interest banks earn on assets such as loans will increase faster than the cost of their liabilities such as deposits. Additionally, rising interest rates can be a good sign for the economy and a signal of increased loan demand or relatively low credit risk.



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