Discussion Paper
How Do Interest Rates (and Depositors) Impact Measures of Bank Value?
Abstract: The rapid rise in interest rates across the yield curve has increased the broader public’s interest in the exposure embedded in bank balance sheets and in depositor behavior more generally. In this post, we consider a simple illustration of the potential impact of higher interest rates on measures of bank franchise value.
Keywords: interest rate risk; banks; valuation;
JEL Classification: G2;
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https://libertystreeteconomics.newyorkfed.org/2023/04/how-do-interest-rates-and-depositors-impact-measures-of-bank-value/
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2023-04-07
Number: 20230407b