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00:00 After the Moody's Bank reduced its portfolio to 10 US banks,
00:06 today Fitch warns of a reduction in the portfolio to a new number of banks.
00:13 So today, an analyst at Fitch's Bank considered that the banking sector may face some problems in the next phase.
00:22 JP Morgan, one of the biggest banks in the risk circle, is expected to reduce its portfolio.
00:33 If the portfolio is reduced to new banks from AA- to A+,
00:41 Fitch will have to re-evaluate 70 US banks.
00:48 If we look at the current portfolio of US banks,
00:54 the biggest banks are Bank of America and JP Morgan,
00:59 and the portfolio is currently AA-.
01:01 As for Wells Fargo and Morgan Stanley, the portfolio is A+.
01:06 We also point out that Moody's announced last week that it will reduce its portfolio to 10 US banks.
01:17 If we look at the main reasons behind this,
01:20 we cannot exclude the claims of the collapse of US banks in March.
01:28 It is true that in the second quarter of this year,
01:31 US banks showed stability in their deposits after losses were high in March,
01:40 after the financial crisis.
01:43 However, banks had to pay more to their clients in return for the losses.
01:50 This is affecting the low-rated banks.
01:55 We also point out that the cost of financing is one of the main reasons behind this.
02:01 The US interest rate has increased,
02:04 and companies have had to pay more to their clients.
02:09 We also point out that the high interest rates have affected the value of the banks' assets,
02:23 and it has made it difficult for the investors to repay their debts.
02:29 This is one of the reasons why the US banks' portfolio is now lower than expected.
02:38 Fitch has already reduced the US financial portfolio from AAA to AA+,
02:47 and it is expected to reduce the financial situation for the next three years.
02:55 So, will we see more reduction in the US financial portfolio in the near future?