Simple banking: profitability and the yield curve

Alessandri, Piergiorgio; Nelson, Benjamin
August 2012
Bank of England Quarterly Bulletin;2012 3rd Quarter, Vol. 52 Issue 3, p245
Academic Journal
The article examines the relationship between bank profitability and interest rates. It mentions that if interest rates have a systematic effect on bank profitability, the monetary policy may have implications for the resilience of the financial system. It further investigates the effects of interest rates on profitability using a new panel data set containing information on Great Britain activities of Great Britain and foreign banking groups during the years 1992-2009.


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