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Karen Maley

Banks moving into the sweet spot of the cycle

Rising interest rates are fattening their net interest margins, while a buoyant economy keeps their bad debt charges low.

What’s not to like if you’re a banker right now?

After years of suffering from inexorable downward pressure on their interest rate margins – the difference between banks’ funding costs and what they charge on their loans – banks are in the sweet spot of the credit cycle.

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Jill Margo was a senior writer at The Australian Financial Review.

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    Original URL: https://www.afr.com/companies/financial-services/banks-moving-into-the-sweet-spot-of-the-cycle-20220807-p5b7v5