US regional banks set for third consecutive day of losses

PacWest Bancorp

18/09/2023 15:43

** Shares of U.S. regional banks drop, with the KBW regional
banking index  .KRX  set for third consecutive session of losses
    ** PacWest Bancorp  PACW.O  falls 2.7% while KeyCorp down 2%
while Western Alliance Bancorp  WAL.N , M&T Bank  MTB.N  and
State Street Bank  STT.N  down between 1.5% and 1.7%
    ** "The economy faces a period of higher sustained interest
rates than we've grown accustomed to seeing," said Vanguard
senior economist Josh Hirt
    ** Investors have been betting the Federal Reserve would hit
the brakes on its interest rate hike and protect the economy
from tipping over into a recession
    ** Higher rates can boost banks up to an extent since
lenders can charge higher on their loans, but can also make
borrowing too costly and spook potential borrowers
    ** An interest rate decision from the Fed is due this week
    ** Meanwhile, Wall Street indexes were mixed on Monday  .N 


 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com;))