In environments where there are low interest rates, borrowing becomes more attractive due to lower costs. Individuals and businesses alike seize such opportunities for various purposes – be it buying homes or expanding business operations, respectively. The surge in loan demand allows banks not only to make up for decreased rates through volume but also to earn significantly more overall, despite individual loan yields being lower. Apart from stimulating borrowing activity, declining interest rates often drive investors away from bonds that yield less and towards equities instead. This benefits banks that have robust wealth management divisions managing portfolios invested heavily in stocks rather than fixed income securities.