Rate Hikes Pressure Regional Banks More than Global Ones

Dow Jones
09/18

1700 ET - The Federal Reserve raising interest rates by a quarter of a point will have more of an impact on regional banks than big global ones, UBS analysts say in a research note. Shareholders are going to be keenly focused on deposit growth and pricing dynamics at regional banks, which are underperforming the bigger banks, the analysts say. Even with no discernable shift in tone on deposit competition at this week's global bank conference, banks are expected to have higher deposit costs in 3Q from having to pay customers higher interest on their savings, they say. The analysts have preferred major global banks to regionals all year and the rate outlook supports that stance, they say.

 

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