16 Jan 2024 | Financial Services | research series

U.S Bank's Chilly Year-end - Regulatory Fines Spook US Bank Bottom-lines

The collapse of three U.S. banks set off a chain reaction in 2023, draining the FDIC's insurance fund and compelling major banks to step in with an emergency infusion in Q4. This rescue, while critical, led to unexpected one-time charges and a tangible profit dip for several leading banks, with one incurring losses. Amidst this, the Federal Reserve's aggressive rate hikes since 2022 have heightened loan default risks, squeezing banks further. How can they rebound? Jasper Colin's study offers insights into AI-backed strategies and data-driven technology as key tools for U.S. banks to regain stability and efficiency in these turbulent times.