Faculty News
Professor Lawrence White is interviewed about the relationship between interest rates and bank profitability
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Excerpt from The Wall Street Journal -- "This is because banks use deposits with short maturities and low rates of interest to fund loans with longer maturities and higher rates of interest, said New York University Stern School of Business professor Lawrence White. 'When the yield curve flattens—as it has, because interest rates generally are quite low and zero is the lower bound for deposits—bank profitability generally suffers,' he added."
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