Interest rates

A debate is brewing about whether rising rates mean banks must pay more to hold onto deposits from city and county governments — and whether they are worth it. Some would say no question on both counts, while others say it all depends on the financial strategy of the client and how badly the bank needs that client.

As U.S. banks were tallying up the billions of dollars in extra profits they'll reap from the sweeping tax cuts signed into law by President Donald Trump, they were quietly delivering unwelcome news to local governments: The interest rates on their loans were about to go up.

Bank stocks recovered some of their lost value on Tuesday on extremely high levels of trading volume. The lone exception: Wells Fargo.

Bank stocks tumbled on Monday amid a wider sell-off as investors' concerns mounted that wage growth could lead to inflation, higher borrowing costs for businesses and changes in the Fed's rate-hike plans.

Though business owners are more optimistic about the direction of the economy since the tax law was passed, it's doubtful their borrowing will increase meaningfully until they see more signs of more robust growth, bankers say.

The Fed said Wednesday that the system paid roughly $80.2 billion to the Treasury in 2017, a 13% drop from a year earlier because of an increase in interest payments to member banks for reserve balances.

Banks are looking for ways to capture and retain deposits as interest rates rise, including promotional offers and focusing on relationship banking.

The economy is ripe for another downturn in the months or years to come, and banks shouldn’t be lulled into a false sense of security.

Bank of Canada governor says digital currencies could cause “significant disturbance”; JPM testing quantum computing's abilities.

Sen. Elizabeth Warren, D-Mass., was the only member of the Senate Banking Committee to oppose the nomination of Federal Reserve Board Gov. Jerome Powell to lead the central bank.

Federal Reserve chair Janet Yellen said interest on bank reserves should remain the central bank’s primary monetary policy tool.

Capital One Financial will stop originating mortgage and home-equity loans after competition made it difficult for the businesses to be profitable.

Investors Bancorp in Short Hills, N.J., chased deposits in the third quarter in a move that drove up interest expenses and lowered profits.

The accord is the latest development in investigations by governments across the globe into banks’ manipulation of benchmark interest rates.

The president of the St. Louis Fed said that regulators should go back to the pre-Dodd Frank framework for small banks, while warning about changes to the system as fintechs expand their presence.

The embattled company has begun offering cash bonuses to certain customers who open accounts, but at least for now pricey deposit rates would not ensure that customers stick around, executives said Friday.

The Pittsburgh company benefited from loan growth and higher interest rates, though fee income fell and expense rose in the third quarter.

Total revenue rose less than 1% to $21.8 billion, but expenses declined 2.5% to $13.1 billion. That computed to the highest profit at Bank of America in six years.

Facing persistently low loan yields, increased competition and higher regulatory costs, many community banks are at risk of becoming irrelevant unless they rethink their business models.

A slight decline in core deposits in the second quarter stoked worries that tighter liquidity is around the corner. Bankers are exploring responses beyond the typical CD rate special if third-quarter results show the trend is continuing.