I get annoyed with this kind of quote, "The most disconcerting thing is that [rising interest rates] is all going to make the banks richer,"
Makes my blood boil. Why are rates going up? It's not an arbitrary decision by the banks. They borrow that money and they pay higher rates for that borrowing (either through borrowing from international money markets or paying higher interest on deposits).
The profit margin DOES NOT GO UP!
On a marginal basis, the banks make a lot of money, but a smaller percentage of profit than many other similarly sized businesses.
Yes and no. I too get annoyed when people think this.
However the bank's net interest margin has been increasing:
Sept 22 = 2.3%
June 22 = 2.2%
March 22 = 2.1%
Dec 21 = 2.0%
Sep 21 = 2.0%
Over the past year the NIM has increased by 15% from 2.0% to 2.3% for ANZ
Now that's not to say that the banks are charging more from you and me with our mortgages - the increased NIM is largely due to lazy funds - money sitting in accounts earning zero or very low interest rates. When lending rates were 2%, those funds were earning the banks 2%. Now floating rates are 7.99%, those lazy funds are earning the banks 7.99%.
So when interest rates rise, banks do make more money but not in the way you think.