What are people's thoughts on this. I just sat through listening to one of the high streets biggest banks senior leaders trotting out what I think to be yesterday's explanation of bank performance....

Low interest rate environment has compressed margins and as a result banks are finding profitability difficult. We therefore need to build market share across all products if we are to maintain / build profitability.

My view is that central government's are universally going to be looking at inflating away their debt burdens built up over the pandemic. As a result banks are going to be able to expand margins. That's the good news. 

The bad news is that as rates rise, there's going to be a wave of bad debts from customers who've over extended themselves in the long and low interest environment.

Expanding market share at this point, especially in loans and cards will be a mistake. Perhaps an expansion in share of deposits (especially fixed rate, longer term) and asset / wealth management would make more sense.

Thoughts about this and also do we think it's going to be a lower or higher (as Brucie said) interest rate environment?

Barclays (LON:BARC)

Hsbc Holdings (LON:HSBA)

Lloyds Banking (LON:LLOY)

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