Banks Confident At Credit Suisse Financial Service Forum

US banks are bullish on the economy, but large and mid-cap banks have different outlooks on the changing regulatory environment

At the recent 2015 Credit Suisse Financial Services Forum, banks were upbeat about the state of the US economy, with most of the debate centering on the timing and size of the coming Fed rate hike. Since banks can’t count on a rate hike coming soon to relieve pressure on their net interest margins (NIM), they will continue to focus on costs for at least the first half of this year.

“Expenses remain very much in focus, though it seems incrementally more difficult to generate efficiency gains without revenue momentum. The first half of 2015 will clearly be challenging for...