Since Banks borrow short and lend long, their margins are higher when the curve is steep.

因为银行的存款是短期的，而贷款是长期的，收益曲线越陡峭，他们的利润越高。

youdao

That allows banks to borrow short and lend long; earning higher rates on loans to business.

这允许银行可以短期借进，长期借出，从商业贷款更高的利率中获益。

youdao

Liquidity is that Banks lend long and borrow short -short-term, I mean.

流动性是指银行贷长借短，短是指短期。

youdao

Liquidity is that banks lend long and borrow short -short-term, I mean.

流动性是指银行贷长借短,短是指短期

耶鲁公开课 - 金融市场课程节选

But the Federal Reserve had already started raising short-term interest rates, flattening the yield curve, the difference between short and long rates. (Since banks borrow short and lend long, their margins are higher when the curve is steep.) When this began eating into lenders' profits, they reacted by pushing subprime rates back up.

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So, what a bank actually does is borrow short and lend long: Brad Delong has used this as a definition of a bank.

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They had made two "slightly unsophisticated" errors, he said, which were to "borrow short and lend long" and to lend "very, very large amounts of money to people who could not pay them back".

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