How does a high inflation rate affect banking revenues?
Posted on July 31st, 2009 by admin
Banking
U.S had been spending money lavishly recently. Continuing pumping more cash into the financial system. This will result in higher inflation. The question is: Will a high inflation rate affect U.S banking revenue, how?
U.S had been spending money lavishly recently. Continuing pumping more cash into the financial system. This will result in higher inflation. The question is: Will a high inflation rate affect U.S banking revenue, how?
Filed under: Economics
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It will raise reported revenues because everything is expressed in current dollars.
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High inflation is good for borrowers and bad for lenders so therefore banks would lose money.