New answers tagged federal-reserve
0
Banks lend because it is profitable for them to lend out money. Banks do become less profitable in low interest environment, but they are still empirically able to maintain profitability, although there is evidence that goes hand in hand with some increase in risk taking (e.g. see Bikker & Vervliet 2018). Consequently, the direct answer to your question ...
Top 50 recent answers are included
