Several weak quarterly earnings reports highlighting the negative effect of higher interest rates soured investor sentiment on the industry.
Regional banks suffered a steep sell-off Friday after a number of weak quarterly earnings reports highlighting the negative impact from higher interest rates soured investor sentiment toward the industry.in net interest income compared with the previous quarter. The bank also expects a further drop in NII, seeing a 5% decline in the fourth quarter.
NII is the difference between interest banks earn on loans and what they pay out on deposits. As interest rates rise, lenders are pressured to pay more to keep depositors. The Federal Reserve has raised its key borrowing rate 11 times since March 2022 by a total of 5.25 percentage points, and the central bank recently vowed to keep rates higher for longer to combat stubbornly persistent inflation. Higher rates could lead to more losses on banks' bond portfolios and contribute to funding pressures as institutions are forced to pay higher rates for deposits.as Regions, saying its NII is expected to decline between 5% and 6% in the fourth quarter.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Woman in custody for allegedly setting several fires in Sherman Oaks areaSeveral fires were reported in the Sherman Oaks area within a three-hour timeframe, according to police.
Read more »
Drone Attack on U.S. Troops Intercepted in Iraq, Heightening Fears of a Regional ConflagrationTwo suicide drones launched at a base hosting U.S. troops in Iraq were intercepted Wednesday, a defense official said.Hours later, an Iranianbacked militia in Iraq announced it had launched another drone attack on a second base. No injuries were reported in either...
Read more »
Cleveland ISD holds town hall following several student overdosesCleveland ISD brought the community together to announce multiple solutions to a big problem involving drugs.
Read more »
| Israel OKs limited aid for Gaza as regional tensions rise following hospital blastPresident Joe Biden visited Israel on an urgent mission to keep the Israel-Hamas war from spiraling into a broader regional conflict
Read more »
| Israel OKs limited aid for Gaza as regional tensions rise following hospital blastIsrael has agreed to allow Egypt to deliver limited humanitarian aid to the Gaza Strip while the Israeli military keeps up its airstrikes on the Palestinian territory
Read more »
Israel allows limited aid for Gaza as regional tensions rise following hospital blastIsraeli airstrikes pounded locations across the Gaza Strip early Thursday, including parts of the south that Israel had declared safe zones, heightening fears…
Read more »