interest rates

A Fed committee studying Libor’s replacement has dwelled heavily on the potential impact to the derivatives market. Loans may become a bigger part of the conversation later this year, but the panel plans to leave a lot of the specifics up to lenders.

As much as $2.5 trillion, or nearly half of bank deposit growth since the crisis, may be attributable to the central bank's quantitative easing. If investors start drawing down on their accounts to buy back assets from the Fed, the trend could dampen liquidity at certain banks, add upward pressure on deposit prices and reshape M&A.

The Cincinnati company reaped the benefit of the latest round of interest rate hikes, as a higher net interest margin and lower costs helped overcome the drop in lending.

House Republicans are ramping up their criticism of the Fed for making interest payments to member banks on excess reserves, and may have identified a way to counter claims that the payments are critical to monetary policy.

The expansion of the Federal Reserve’s portfolio of Treasury debt and mortgage-backed securities has a bigger impact on the credit markets than paying banks interest on excess reserves.