Rising Interest Rate Could Hamper U.S. Banks’ Capitalization

Fitch Ratings in its report feels an increase in the interest rate would adversely impact bank’s capital under the proposed Basel III framework for U.S. banks.

The recent increase in U.S. Treasury yields and speculation of Federal Reserve exiting bond buying program would accentuate potential risks faced by U.S. banks, according to Fitch Ratings.

Interest Rate Rise Would Affect Banks’ Bond Portfolio

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