Heading into this year, many market observers expected four Fed rate hikes, a number that subsequently dropped to two and now, in the eyes of some experts, zero.
Related: Financial Sector ETFs Maintain Momentum
“Income and revenue both increased from a year ago,” FDIC Chairman Martin Gruenberg said in a statement. “Loan growth remained strong, the number of unprofitable banks was at an 18-year low,” reports Reuters.
The largest American banks may have to set aside more cash to strengthen balance sheets as a way to obviate further shocks, potentially putting additional strain on the financial sector and related exchange traded funds.
For more information on the banking sector, visit our financial category.
Financial Select Sector SPDR
