Rate Uncertainty Hits NIMs, BaaS Banks with Enforcement Actions Struggle

The shifting interest rate environment is clouding banks' outlooks for net interest income, S&P Global Market Intelligence wrote. Last year, NIMs expanded during the fourth quarter as deposit costs fell faster than loan yields. But concerns about growth and inflation are starting to weigh on medium- and long-term rates, and loans are repricing lower, pressuring earnings.

Another S&P article discussed the relative underperformance of BaaS community banks dealing with enforcement actions.

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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