For many of the problems that are currently the subject of intensive debate at savings bank conferences around the country will not impact in full until a later date. I refer, in particular, to the prevailing low-interest-rate environment. Lower interest margins started to impact on savings banks back in 2016, doing so in the form of reduced interest income.
At that time, these institutions were still able to counter this effect, chiefly by raising net commissions received and cutting administration costs. But the longer the current interest rate prevails, the greater the problems will become.1 But we need to be clear about one thing: putting an end to low interest rates will not bring relief right away.