Bank of America thinks that worries about banks — especially smaller ones — are well-founded.
"The events of the last few days are likely to worsen the funding cost pressure that the industry was already facing," Poonawala wrote."No bank is immune, but this pressure will likely be most pronounced among banks with a larger mix of rate-sensitive customers." "Higher-for-longer interest rates pose significant risk to the outlook for bank EPS in the form of increased pressure on net interest margins, slowing loan growth, and worsening credit quality," Poonawala wrote.Recent bank collapses led analysts at Bank of America to cut their regional bank price targets by an average of 14% due to heightened earnings risk and the lower valuations they'll have going forward.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WSJ - 🏆 98. / 63 Read more »