Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services
companies that
borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high -
quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.
The low interest rates it offers is only valuable to
companies that don't need help — high
quality, those that have no difficulty
borrowing.