Many US banks want to curb Fed balances

Almost half of banks polled by the Federal Reserve said they’d try to curb their excess reserve balances by year-end, out of fear for their withering net interest margins (NIM) in the current low-rate environment.

Of 80 banks surveyed by the Fed in September, 37 said they planned to “take actions to reduce either the level or growth in [their] reserve balances” by December. Five banks aspired to cut reserves by 50%, and 21 between 6% and 50%.

Of these 37 lenders, 30% said the most important

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: