Banks Worried Low Rates Will Cut Margins and Not Spur Borrowing

The Fed took the unprecedented step of cutting rates to near zero to help ease the blow of Coronavirus and keep banks lending; banks are worried the low rates will not boost borrowing and margins will get crushed; “We are in unprecedented times for rates,” said Robert Meyer, President and CEO of the $113 million-asset Wayland State Bank in Mount Pleasant, Iowa, to American Banker. “I’m worried we’re setting a standard that’s just dangerous.”; cutting costs will most likely be the most effective route for bankers as they try to avoid a similar fate to what happened to European lenders with negative rates. American Banker

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