Report: US banks will continue to focus on restructuring

12 July 2012

The restructuring of balance sheets will remain high on the priority lists of US banks over the course of the next few quarters, Fitch has stated.

According to the leading credit ratings agency, financiers in America are still being affected by the country's low interest rate environment, which means they face little choice but to continue implementing changes to their operations in the near future.

Fitch explained that being as US Treasury yields are stuck around historic low points, banks will carry on facing challenges in generating their spread income and enhancing their margins.

"As a result, we expect that many institutions, particularly larger banks with substantial amounts of excess liquidity, will review investment strategies carefully," the group added.

Indeed, larger lenders - those with assets in excess of $10 billion - have endured the largest compression on their margins in the last year, with their average net interest margin standing at 3.44 per cent in the opening quarter of 2012.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development