Banks don't necessarily lose profit if interest rates fall. Discuss.?

One reason would be that lower interest rates may encourage more people to buy homes, causing more people to take out loans for homes. The mortgage payments the banks receive may be lower than before, but there will be more people paying the mortgage.

Banks dont lose money,they borrow at a lower rate than they lend,so its not material what the rates are its the margin that stays the same [their profit].So if you ask for a term deposit,they offer you 5%,then if you ask for a mortgage they charge you 7% [plus heaps of other charges for giving you the loan],hence the profit.When they go to the wall,its for 1 of 2 reasons,there has been a property crash [so that people cannot repay the loans & the asset has devalued below the amount borrowed] or the bank has been gambling,like many of them have done of recent times [& then what generally happens is the govt bails them out,thats us the taxpayers].Great business banking,you make billions in profits & if the **** hits the fan,the poor bloke on the street [who they screwed in the first place] bails them out..How's that for a democratic practice...

No, bank profits do not decrease because the deposit rates also go down...Banking is lending+ borrowing business.

Banks bust at the same time interest rates go down not because of less profits but because the reasons to bring down rates ie past fake growths are inducted by banks and they must suffer.