Moody’s warns that banks are taking on risk again
Moody’s Investor Service is warning that banks once again may be taking on too much risk as the Fed’s low-interest rate policy encourages them to increase risk to boost earnings.
The low rates undercut bank profits and create asset bubbles, the ratings agency noted. “Risks can be clouded by low rates,” said Robard Williams[5], Moody’s vice president.
The Moody’s report, published Thursday, said low interest rates are the second biggest lingering risk for the global banking system in 2013, surpassed only by macroeconomic issues such as weak global growth and continued economic problems in Europe, The Street reports[6].
Shoptalk, Banking, Economic development
References
- ^ Greg Edwards (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Twitter (twitter.com)
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- ^ Robard Williams (feeds.bizjournals.com)
- ^ The Street reports (www.thestreet.com)