The document discusses the impact of changes in the Federal Funds rate on bank earnings, particularly focusing on the spread between asset returns and liability costs. It estimates that a 25 basis point increase in the Federal Funds rate could boost S&P Banks' earnings per share by 3.5% or nearly $0.50. The document also highlights the role of interest rates in attracting deposits and managing credit risks.
documents/vol00010-efta01459752-pdf.pdf
{"title":"US Equity Insights","document_date":"2016-02-08","document_type":"other","key_organizations":["S&P Banks","Deutsche Bank Securities Inc."],"reference_numbers":["DB-SDNY-0120414","SDNY_GM_00266598","EFTA01459752"]}