Analysis: U.S. banks face interest rate risk, end to government support

01/20/2010 | Economist (free content), The

Credit card restrictions, toughened capital requirements and weak loan demand are only some of the headwinds facing U.S. banks, according to The Economist. Government support that helped banks through the financial crisis is being withdrawn, and the interest rate curve is about to turn against them. Historically low interest rates gave banks' profit a big boost, but earnings will come under pressure when they head back up. "Over the past three years, America's banks have gone from feast to famine and (for some) back again," according to The Economist. "The future lies somewhere in between."

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Economist (free content), The

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