What’s Driving the Outlook for Banking
The banking industry has benefited from a generally stable economy and modest GDP growth so far this year, says Jeff Berg, associate managing director with Moody’s. Against this backdrop, most banks would do well to focus on growing low-cost core deposits within their existing customer bases. But they should be aware that normalization in the credit cycle could pose profitability challenges. Changes in the regulatory environment could also prove less favorable in the long run, as they add to overall uncertainty and potentially greater credit risk.
Topics discussed include:
- The Impact of Regulatory Uncertainty
- Possible Credit Risk
- Market Effects on Fee Revenue
Jeffrey Berg
Jeff Berg is an associate managing director at Moody’s Investors Service, Inc. Since 2024, he is responsible for a team of analysts covering US regional and Canadian banks. The team is responsible for the assignment and timely monitoring of ratings as well as producing engaging research and interacting with banks, intermediaries and investors. Mr. Berg joined Moody’s in 2003 and held various roles as an accounting specialist and a fundamental credit analyst within the US property and casualty insurance team. In 2009, he transitioned to a group credit officer responsible for monitoring ratings quality, as well as assisting in the development and implementation of rating methodologies and practices. Over time, he led groups of group credit officers responsible for financial institutions and public finance before moving to his current role.