Treasury Secretary Yellen expects more bank mergers this year, WSJ reports

Treasury Secretary Janet Yellen sees more bank mergers this year as higher interest rates and recent banking turmoil are making it more expensive for them to keep depositors, The Wall Street Journal’s Andrew Duehren reports. Paying higher rates for deposits is hurting banks’ profitability, Yellen said, which could become apparent in their Q2 earnings next month. “There will probably be banks that end up wanting to merge,” Yellen said in an interview in Paris. Yellen previously commented that it was possible some banks could look to buy each other and that more consolidation in the banking industry could be healthy.