3  The inflation expectations employed in this calculation are those implicit in the gap between the interest rates on ten-year Treasury inflation-indexed notes and those on a nominal security derived from Treasury STRIPS constructed to have comparable duration. The latter are used because they have the same relatively limited liquidity as inflation-indexed notes.
Sure, a certain loss of business is unavoidable and also makes sense in the current environment, but this doesn’t necessarily mean that the number of banks and savings banks needs to drop; there’s no reason why larger banks couldn’t just get smaller. A severely consolidated sector is surely not in our country’s best interests – at least, that’s the way I see it.