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What Could Drive Bank of America’s Core US Banking Business

Robert Karr
What Could Drive Bank of America’s Core US Banking Business

The Fed’s hawkish monetary policy started widening banks’ (XLF) net interest margins in 2016. However, margins have stabilized, and any further rate hikes from here on could pressure banks’ credit offtake rather than expanding their interest income. Amid higher borrowing costs, banks’ focus has shifted toward retail and credit card lending.