Since the recession, banks have gradually reinvested more and more of their liquidity in securities. A handful have taken this trend to the extreme, putting nearly all of their deposits into investments and lending almost nothing. While delivering consistent, low-risk profits, the model faces pressure from regulators and the economy.
How Some Banks Make Money with Limited Lending
- Full access to banking's most comprehensive daily report
- Daily, weekly, and topic-based newsletters and alerts
- Award-winning analysis and insight, focused on bankers' key concerns
- Bimonthly industry research reports (including archive)
- Morning Scan Plus e‑newsletter
- Full access to 2016: The Candidates, the Issues