Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'
Publishing timestamp: 2023-03-14 20:21:16
Summary
Moody's has downgraded its view on the entire US banking system to negative from stable due to concerns about unrealized losses and uninsured depositors, despite regulators' efforts to shore up the industry. Moody's has also downgraded Signature Bank and placed several other institutions under review for potential downgrades. The article notes that extended low rates and Covid pandemic-related fiscal and monetary stimulus have complicated bank operations, and rising deposit costs will reduce earnings at banks. Moody's expects the US economy to fall into recession later this year, further pressuring the industry.
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