The important point here being that bank profitability is about the difference in interest rates, between what they pay and what they charge. As interest rates creep higher and the president-elect promises fewer regulations, the outlook for U.S. banks appears bright. And short term money is near always cheaper than long term money. The higher nominal interest rates are the larger the margin the bank will be able to make. And of course economic policy over this past decade has been all about pushing down nominal interest rates to near nothing, hasn't it?

Source: Forbes January 14, 2017 15:15 UTC