US banks started to reap profits from the increased lending margin

Since Donald Trump’s election in November 2016, the US banking industry showed moderate growth, according to the Federal Reserve report on Wednesday.

After benchmark interest rates were raised by a quarter for the third time since financial crisis, the margin between interest rates on consumer loans and rewards on deposits has become fatter, which resulted in increased profits for the banks nationwide. Loan-market funds had near zero interest rates for years, so now in the rising interest rate environment they are eager to struggle for borrowers and deposits.

Throughout his election campaign, Trump argued in favor of reducing corporate taxes and relaxing federal regulations applied to American financial institutions, which also affected financial market trends - immediately after the election day the 30-year fixed mortgage rates rose by 20%.

While there remains a certain degree of skepticism regarding positive effects of higher interest rates on US economy, many financial analysts predict further growth trends.