The document discusses the relationship between inflation, credit expansion, and bank profitability. It argues that banks' deposit bases and loan books should grow with inflation due to credit creation, and that banks can serve as inflation hedges. The document critiques the misuse of valuation formulas, particularly the Gordon Growth model, in valuing banks and emphasizes the importance of using correct valuation methods.
documents/vol00010-efta01459753-pdf.pdf
{"title":"US Equity Insights","document_date":"2016-02-08","document_type":"other","key_organizations":["Deutsche Bank Securities Inc."],"reference_numbers":["DB-SDNY-0120417","SDNY_GM_00266601","EFTA01459753"]}