Thursday, September 25, 2008

U.S. Banking Conditions and Performance (fg)

These two figures may give you an impression why banks are heavily interested in provision-based finanical products and yhe they followed this stragety rather than simply reyling on the "classical" maturity transformation. Although interest rate margins decreased secularily the last decade, returns on equity remained stable until recently. Thanks to mututal funds, credit products & Co.