Fed's Daly Says The Banking System Is Safe; Banks Are Tightening Credit, But That's What We Want Banks To Do, To Get Drop In Inflation That We Need
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Mary Daly stated that the banking system is safe and that banks are tightening credit, which is desirable to achieve a drop in inflation. This could impact the performance of banking and financial sector ETFs.
September 22, 2023 | 5:29 pm
News sentiment analysis
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NEGATIVE IMPACT
The SPDR S&P Bank ETF (KBE) could be impacted by banks tightening credit as it may affect the profitability of banks in the short term.
Banks tightening credit could lead to a decrease in lending activities, which may impact their profitability in the short term. As KBE is a bank ETF, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P Regional Banking ETF (KRE) could be affected by the tightening of credit as it may influence the profitability of regional banks.
Tightening of credit could lead to a decrease in lending activities of regional banks, which may impact their profitability. As KRE is a regional bank ETF, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund (XLF) could be impacted by the tightening of credit as it may affect the profitability of financial institutions.
Tightening of credit could lead to a decrease in lending activities of financial institutions, which may impact their profitability. As XLF is a financial sector ETF, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may see minimal impact from the tightening of credit as it is a broad market ETF.
As SPY is a broad market ETF, the impact of credit tightening in the banking sector may not significantly affect its performance.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50