Banks are important indicators of overall economic activity and many people look at their financial statements and commentary during earnings season to gauge economic trends. The upcoming quarters are especially important due to concerns about the SVB and regional bank crisis. The top concerns are deposits and fair market value on-balance sheet debt securities. It was previously believed that money was flowing from regional banks to larger banks, but there is a natural erosion of deposit accounts taking place across all banks. Larger banks seem to be managing their debt security exposures to a rising rate environment better than smaller banks.
Bank Earnings Trends
Banks are important indicators of overall economic activity and many people look at their financial statements and commentary during earnings season to gauge economic trends. The upcoming quarters are especially important due to concerns about the SVB and regional bank crisis. The top concerns are deposits and fair market value on-balance sheet debt securities. It was previously believed that money was flowing from regional banks to larger banks, but there is a natural erosion of deposit accounts taking place across all banks. Larger banks seem to be managing their debt security exposures to a rising rate environment better than smaller banks.