USA | Dirk Diggler - 2/19/2021 11:04
An employee at Farm Credit once told me that they make a certain margin regardless of the interest rate. Theoretically, they may be more profitable with lower interest because they write more loans. And they have happy borrowers.
Banks and Farm credit would be more profitable with higher int rates. Farm credit that I deal with has 20% Capitol. Higher rates would improve profitability, same with banks that are setting on surplus cash that is not loaned out which is currently not much above 0% . |
Bank stocks? Higher interest and inflation?
