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| Reality, was the bank you worked at holding a long duration bond portfolio worse than most? Liquidity got tighter for banks out my way, but I havent talked with bankers (or seen on call reports) any dire scenarios in our market. Time heals and mostly that issue has passed. All banks "here" would put on a good loan. I dont know of any bank that turned away loans even during the worst of 2023 liquidity stress due to liquidity stress.
Edit add: regarding the loan under cutting. Sure there will always be a Walmart bank I suppose. Someone has to be lowest rate. That doesnt change the national loan to deposit ratio, that simply changes ratio at the 2 banks involved when a borrower switches. The average stays the same. Nationally, there is lots of room for new loans.
Edited by reformedbanker 12/28/2025 14:41
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How money is created
