“What Happens to Banks When Interest Rates Stay Low?”

Calomiris appeared on “Bloomberg Markets” with Carl Riccadonna from Bloomberg Intelligence to discuss the Federal Reserve’s interest rate policy and its impact on banks. He cited research from a paper he had published previously, which indicates that when interest rates are zero for an extended period of time it makes bank branches unprofitable. He also noted that the Fed alone might not be responsible for some of the recent volatility, as regulations could be an explanatory factor as well. See the entire segment at Bloomberg.