Rising interest rates were supposed to help banks. They are hurting many of them instead. Three years after the Federal Reserve began raising rates from near zero, bank customers are starting to demand more interest on their deposits, particularly at small and regional U.S. banks. Many of these same banks ramped up lending after the financial crisis by adding long-term, low-rate loans. Now, as they pay out more to depositors, the rates they are earning on loans are barely moving.

Source: Wall Street Journal December 16, 2018 15:56 UTC