Correspondent Blog
Tag: Fed Cuts
09/03/24
Predicting Bank Performance with Declining Rates
Most community bankers we talk believe they will get a boost to bank performance with declining short-term rates. The thinking is that a lower Fed Funds rate will mitigate credit risk, spur loan demand and potentially soften competition for deposits, leading to wider NIM and more profitability. Unfortunately, the empirical evidence shows otherwise. While the…