Rising rates haven't helped Goldman's small banking unit, which likely will remain small yet subjects the firm to regulatory restrictions on its activities.
Average net interest margin reached its highest level since late 2012 as banks continued to benefit from rate hikes.
An FDIC survey shows the industry is benefiting from increasing net interest margins, which reached an average of 3.22% in Q2.
In this interest-rate cycle, financial institutions are taking an especially long time to raise the rates they pay on deposits. Here's why.
Still, Bank of America, the nation’s second largest bank, beat analysts' earnings-per-share estimate, as it reduced expenses and grew its loan book.
"There are signs of growing credit risk, particularly among loans related to energy and agriculture,” said the FDIC's chairman.
Banks once dreaded rate rises. Are they right to look forward to them now?
Tepid demand, thin margins, new regulations, investor caution &spamp;#8212; and a lingering public-relations problem. No wonder banks are nervous.
