1 Reason Banks Are Making So Much Money

While it is true that banks are able to borrow money at historically low interest rates at the moment, the rate at which banks have been able to lend money has also been compressed recently, and the banking industry's profit margin in between those two rates is shrinking. However, in this video, Motley Fool financial analyst Matt Koppenheffer points out that while these shrinking margins are hard for banks across the industry, very low interest rates also mean banks are doing a huge amount of volume in mortgage and mortgage refinance loans, and the fee business from those loans is booming. 

To learn more about the mo talked-about bank out there, check out our  in-depth company report on Bank of America . The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just  click here  to get access.

 

The article 1 Reason Banks Are Making So Much Money originally appeared on Fool.com.

Fool contributor Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Add a Comment

*0 / 3000 Character Maximum