Banks Brace for Rate Shifts as OCC Moves to Ease Rules

Analysts expect banks’ net interest income to keep rising as they cut deposit costs faster than loan yields adjust, according to S&P Global Market Intelligence. Recent Fed rate cuts and stable longer-term rates are supporting asset repricing, and many large institutions are projected to see further margin expansion in the coming quarters.

A separate S&P report highlighted the OCC’s plans to ease regulatory requirements for community banks, including simplified CRA reviews and faster approvals for growth initiatives.