Arab Today, arab today rate hike would give boost to large us banks
Last Updated : GMT 01:27:57
Arab Today, arab today
Arab Today, arab today

Rate hike would give boost to large US banks

Arab Today, arab today

Arab Today, arab today Rate hike would give boost to large US banks

JPMorgan Chase, Bank of America
New York - AFP

A Federal Reserve decision to boost interest rates would give a lift to large US banks and offset the drag on earnings from legal settlements and toughened regulations.

If the Fed gives the green light to a rate hike Thursday, JPMorgan Chase, Bank of America and other large banks would charge more on loans to businesses and individuals, affecting myriad transactions, from car purchases to mortgages, to business capital investment.

"Lending money is going to be profitable again," said Gregori Volokhine, president of Meeschaert Capital Markets.

Banks would also view a Fed rate hike as a boost to the economic outlook and a "green light" to increase overall lending levels, he said.

After a two-day meeting, the Fed on Thursday at 1800 GMT will release a monetary policy statement, followed by a news conference with chair Janet Yellen.

Fed officials have signalled plans to lift rates in 2015, but some analysts think a move Thursday has become less likely due to turbulence in global markets. If the Fed does lift rates, it would be the first increase since 2006.

An increase in their loan rates of one percentage point would translate into $2.70 billion in additional profits for JPMorgan, $3.85 billion for Bank of America and about $2 billion for Citigroup, according to calculations included in the banks' securities filings.

But if the Fed does move on rates this week, the hike is likely to be just 0.25 percent, which on its own would not significantly boost bank profits.

"If they only increased it 25 basis points, I think the banks will welcome the signal, but you are not going to see massive earnings improvement on something like that," said Justin Fuller, a senior director at Fitch.

"In order for them to benefit from increased interest rates, they need a series of rate increases over time."

Analysts say banks could receive an additional benefit from an interest rate hike this week if businesses hasten efforts to secure debt financing in advance of subsequent increases.

"You will see some kind of more rapid borrowing to get in before rates go up further," Fuller said.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today rate hike would give boost to large us banks Arab Today, arab today rate hike would give boost to large us banks

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday