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-Fitch Rtgs: Coronavirus-Induced Rate Drop a Downside Risk to US Bank Profits

Mar 03, 2020 - ENP Newswire

Lower longer term rates and the potential for an emergency Fed rate cut in response to growing fears of economic slowdown due to the global coronavirus (COVID-19) outbreak could challenge profitability for U.S. banks into 2020 and beyond, says Fitch Ratings.

If the COVID-19 outbreak is quickly contained, the disruption is not expected to have a material effect on the creditworthiness of U.S. banks. However, a prolonged severe disruption could negatively affect bank earnings, capital...