Capital markets are eager for banks to raise money, but how should it be used?

Capital markets are open for banks that need to raise capital, which is great. The question is what will banks use the capital for? Outside of M&A, investors are going to be looking for banks to invest raised capital in ways that will boost a bank’s profitability. At the same time, banks have a lot of pressing needs, particularly with technology. While all these needs are important, they do not all return an immediate impact to the bottom line. If a bank decides to raise capital, they will have to be very careful about how the money is invested. The episode reviews an article from Bank Director titled “The capital markets are wide open for banks, industry observers say.” A link to the article is included below.

Link: The Capital Markets Are Wide Open for Banks, Industry Observers Say | Bank Director