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Although banks in the US are reporting strong balance sheets, many are downsizing their retail-banking operations. Goldman Sachs has shuttered 142 branches and Bank of America has closed over 200. Retail banking branches cover consumer financial products like residential mortgages and loans for small businesses. These closures are being caused by a combination of decreased consumer demand for these financial products and the lingering effect of low interest rates on these mortgages and loans. The profits attributable to the interest earned on these retail-banking operations, once “core revenues,” have been diminished under the current, near-zero level interest rates and now even the largest banks are feeling this strain.

By: Spencer Durden

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    Retail Banking Groans Under Stagnant Interest Rate Policies « UM Business Law Institute


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