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Too Much of a Good Thing? Banks Enjoying High Returns in Favorable Times Could Be ‘Warning Sign’

October 2, 2023

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Read time:

5-15 mins
Too Much Of A Good Thing Banks Enjoying High Returns In Favorable Times Could Be Warning Sign
Presented by Michigan News

Is there really such a thing as too much of a good thing, and would that sentiment apply in the banking sector? According to a study co-authored by U-M researchers, Banks reporting high profits in good times could be taking greater risks with their portfolios that lead to bigger trouble in a future downturn.

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