In-depth analysis on Credit Writedowns Pro.

US regionals pressured on loan growth and net interest; European banks over-levered

This is a continuation of yesterday’s post on the outlook in the banking sector. Two years ago, I said that net interest margins at banks would get crushed by the Fed’s keeping interest rates low because it would cause the yield curve to flatten and diminish net interest margins. This has turned out to be true, particularly at regional banks that are more pure play banking franchises without significant investment banking or securities businesses.

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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.