EFTA Document EFTA01459752

8 February 2016 US Equity Insights Estimating bank earnings sensitivity to the Federal Funds rate Banking is a spread business. Banks can earn a good spread between return on assets and the cost of liabilities in a variety of interest rate conditions whether low/high, real vs. nominal, or positive/negative, provided such interest rates are expected and stable or if assets and liabilities can quickly adjust in tandem. However, the most conducive interest rate environment for banks is gener