American banks in will have weak financial performance this year as the US banking system is in turmoil amid sudden collapses of several banks, according to Fitch Ratings.
The global rating agency said most banks have started this year with strong profitability, asset quality, regulatory capital and liquidity, which provide them to weather near-term challenges.
Performance, however, will depend on their “business model, asset concentration and diversity and stability of deposit funding,” it said in a statement.
Fitch noted that it has taken a number of negative rating actions on banks that are most affected by the recent bank failures and significant deposit outflows since March.
Silicon Valley Bank (SVB), Signature Bank and First Republic Bank failed in the last two months due to liquidity issues and sudden deposit outflows.
A US daily earlier reported that nearly 190 banks in the United States are in danger of collapsing.
CURRENTPH NEWS SERVICE