Higher for longer interest rates will be headwind for regional banks: Analyst
10/14/2023 03:30
Regional banks are in focus after Big Banks JPMorgan (JPM), Wells Fargo (WFC), and Citi (C) each topped their third-quarter earnings estimates this morning. What does the larger banks' outlook and the net interest income environment mean for regional banks? David Chiaverini, Wedbush Securities Managing Director of Equity Research, joins Yahoo Finance Live to talk about the Fed's interest rate policy and customer deposits impact on the banking environment, especially for regional banks. "Higher for longer [interest rates are] going to be a headwind for the group, and I think the reason why we're seeing the banks sell-off today relates to... credit quality," Chiaverini says, adding: "It really is an issue of credit quality that I think is taking down the banks today despite [net interest income] coming in better than expected." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Regional banks are in focus after Big Banks JPMorgan (JPM), Wells Fargo (WFC), and Citi (C) each topped their third-quarter earnings estimates this morning. What does the larger banks' outlook and the net interest income environment mean for regional banks?
David Chiaverini, Wedbush Securities Managing Director of Equity Research, joins Yahoo Finance Live to talk about the Fed's interest rate policy and customer deposits impact on the banking environment, especially for regional banks.
"Higher for longer [interest rates are] going to be a headwind for the group, and I think the reason why we're seeing the banks sell-off today relates to... credit quality," Chiaverini says, adding: "It really is an issue of credit quality that I think is taking down the banks today despite [net interest income] coming in better than expected."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.