Rising Risk: US Banks Face Deposit Flight Threat With Shrinking Profits
Portfolio Pulse from Bibhu Pattnaik
Moody's has lowered the ratings of 10 regional banks and is considering downgrading several major lenders including Bank of New York Mellon Corp, U.S. Bancorp, State Street Corp, Truist Financial Corp, Cullen/Frost Bankers, Inc, and Northern Trust Corp. The agency warns of potential deposit outflows due to declining profitability and the Federal Reserve's ongoing rate hikes. Moody's anticipates that the Federal Reserve will maintain higher interest rates until inflation aligns with its target of 2%.
August 13, 2023 | 1:50 pm
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NEGATIVE IMPACT
Bank of New York Mellon Corp may face a downgrade from Moody's due to potential deposit outflows and ongoing rate hikes.
The potential downgrade by Moody's indicates a negative outlook for the bank, which could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Cullen/Frost Bankers, Inc may face a downgrade from Moody's due to potential deposit outflows and ongoing rate hikes.
The potential downgrade by Moody's indicates a negative outlook for the bank, which could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Northern Trust Corp may face a downgrade from Moody's due to potential deposit outflows and ongoing rate hikes.
The potential downgrade by Moody's indicates a negative outlook for the bank, which could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
State Street Corp may face a downgrade from Moody's due to potential deposit outflows and ongoing rate hikes.
The potential downgrade by Moody's indicates a negative outlook for the bank, which could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Truist Financial Corp may face a downgrade from Moody's due to potential deposit outflows and ongoing rate hikes.
The potential downgrade by Moody's indicates a negative outlook for the bank, which could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
U.S. Bancorp may face a downgrade from Moody's due to potential deposit outflows and ongoing rate hikes.
The potential downgrade by Moody's indicates a negative outlook for the bank, which could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100