U.S. Banks Face Dual Challenges: Weakening Loan Quality and Declining Interest Payments Major U.S. banks are expected to report lower second-quarter profits due to decreased interest income and increased provisions for potential loan losses. Analysts anticipate higher risks associated with commercial and industrial (C&I) loans and commercial real estate loans, reflecting a normalization of the credit cycle. The Federal Reserve’s stress test indicates C&I loan loss rates could rise to 8.1% from 6.7% last year. However, the outlook isn’t entirely gloomy, as Wall Street divisions may see improved performance due to a 20% increase in global merger and acquisition volumes and a 10% rise in equity capital market volumes in the first half of the year. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts What's Next for Gold After 2023's Record Total Demand? READ MORE The Paradox of Gold: Prices Soar While Retail Investors Step Back READ MORE Gold Retreats Off Record Highs After Higher than Expected Inflation Data READ MORE Nine years after fleeing in panic, the infamous Deutsche Bank is returning to the LBMA READ MORE Consumer Sentiment Dips to 8-Month Low Despite Easing Inflation Expectations READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment