For the first time since 2008, Moody’s has upped its outlook of the U.S. banking system as a result of improving economic conditions that compensate for low interest rates.
Moody has changed its outlook to ‘stable’ from its former status of ‘negative’ which has lasted nearly half a decade.
According to BigPond News, Moody’s says “sustained GDP growth and improving employment conditions will help banks protect their balance sheets, and after another year of reducing credit-related costs and restoring capital, U.S. banks are now even better-positioned to face any future economic downturn.”
The agency added that low interest rates will have the most impact on financial performance over the next 12-18 months.