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Decline in bank stress likely to continue as interest rates normalize
While the key measures suggest that conditions that hamper a bank’s resilience to economic adversity are marginally higher than before the pandemic in 2019, we expect further declines in bank stress levels as interest rates normalize.
Journal Article
Eleventh District banks rely on core business, stay profitable as loan growth softens
Banks in the Federal Reserve Eleventh District have adapted to rising interest rates, which have discouraged new borrowing and complicated the transition to higher-earning loan portfolios, while credit remains strong as borrowers continue to make payments amidst economic growth.
Journal Article
District banks meet challenging times from position of strength
Texas banks confront an increasingly challenging operating environment, as the state’s usually strong economic growth is predicted to slow later this year and the Federal Reserve’s rapidly rising interest rate environment pressures some institutions’ profitability.
Keeping bank depositors still comes down to rates
How does a bank attract deposits and remain competitive when rates fluctuate and depositors are increasingly mobile? Managing the bank deposit franchise is a cornerstone of bank profitability and stability, and doing so has been challenging during the rapid rise in interest rates in 2022 and the subsequent regional banking turmoil.