NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases this month’s edition of the Bank Treasury Newsletter.
In this month’s issue, Bank Treasurers Play What Is the Question?, we look at issues on the minds of bank analysts, given the recent change in interest rate outlook, and their growing doubts that banks can continue to deliver earnings growth given a slew of headwinds, including falling rates, an inverted yield curve, anemic loan demand, and limited capacity to reprice retail deposits to offset lower yields on interest earning assets.
Other topics discussed are the potential earnings boost large regional banks will accrue from the Fed’s recent amendments to bank regulations, implications for bank lending post-implementation of CECL next year, and the transition to SOFR at the end of 2021, which a group of 10 bank treasurers warned in a letter to bank regulators late last month could lead to shortages in credit availability and more volatile bank earnings in times of stress.
To read the newsletter, click here.
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.