Banks Thrive. Will They Dive? Fitch U.S. Bnkg Qrtrly Review.Business Editors NEW YORK--(BUSINESS WIRE)--June 12, 2000 The profitability of the U.S. banking system continues to grow at a record setting pace, as bankers have developed a greater credit discipline and avoidance of the excess that has been so problematic throughout the late 1990s. Consolidation has also benefited the industry with cost savings and efficiency gains and the elimination of many of the weaker players. While this is a rosy ros·y adj. ros·i·er, ros·i·est 1. a. Having the characteristic pink or red color of a rose. b. Flushed with a healthy glow: rosy cheeks. 2. assessment of the system, the banking system remains very sensitive to both credit and interest rate cycles, which to this point have been relatively benign. `Credit ratings can uphold up·hold tr.v. up·held , up·hold·ing, up·holds 1. To hold aloft; raise: upheld the banner proudly. 2. To prevent from falling or sinking; support. 3. a downturn' is the theme in this quarterly U.S. bank review of the U.S. banking system by Fitch, the international rating agency. The report states that `The industry faces a more challenging environment driven by margin erosion from higher funding costs and higher credit expenses as the early signs of credit deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. continue to manifest manifest 1) adj., adv. completely obvious or evident. 2) n. a written list of goods in a shipment. MANIFEST, com. law. A written instrument containing a true account of the cargo of a ship or commercial vessel. 2. themselves into more severe credit problems. We expect further divergence divergence In mathematics, a differential operator applied to a three-dimensional vector-valued function. The result is a function that describes a rate of change. The divergence of a vector v is given by of performance with the regional banking group the most vulnerable. Yet compared with earlier cycles and the gained experience of the banks, the industry is better positioned to withstand the expected downturn.' The Quarterly Review is an in-depth peer comparison of the thirty largest publicly traded U.S. banks based on reported assets. This group includes the industry's most active debt issuers and accounts for most of the U.S. banking system's assets. The report, which is available at `www.fitchibca.com', includes individual write-ups on the performance of each bank in the peer group. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Corporations, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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