Moody's: Diverging interest rates will widen profitability gap between US banks and global peers

Author: Matthew Bacon-Hall | Category: Education

They have been rather busy today

  • Expect US Federal reserve to progressively increase interest rates over 2017/2018
  • Rising interest rates will support US banks net interest margins and income
And with regards to Europe they had this to say:
  • Expect European rates to remain very low in 2017/2018
  • Continued re-pricing of loans will intensify profitability pressures
  • When short-term interest rates eventually rise in Europe, some banks exposed to long-term fixed assets would face a profit shock
Sounds like a cunning  plan, unless it all fails to materialise