Why Every Basis Point Matters Now

 

February 2017

After eight years of waiting for interest rates to make a meaningful move higher, the Fed Funds rate is making a slow creep towards 2%. With a more volatile yield curve expected in the upcoming years and continued competition for loans, net interest margins (“NIM”) may continue to compress for many financial institutions (FIs). The key for FIs to achieve NIM expansion will involve strong loan pricing discipline and the full “toolkit” of financial products to harvest every available basis point.
Where to look on the balance sheet?

 
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