After facing a slew of challenges last year, the banking industry is looking forward to lower interest rates by the end of 2024. However, there’s uncertainty over when rate cuts will begin. In other words, there are concerns over the interest rates remaining high for longer, continuing to impact major banks negatively.
Moreover, a sluggish economy, deterioration of asset quality, higher deposit costs, and the likelihood of default on commercial real estate (CRE) loans could put pressure on the U.S. banking system.
