Magazine : Archives : 3rd Quarter 2020

For Your Review

PPP’S SLOW EARNINGS BURN Earnings are likely to be rough for banks this year, but fees from the government’s small business relief program could help offset elevated credit costs. Indeed, the Small Business Administration’s Paycheck Protection Program could be one of the highlights. It offered banks a fee for loans made under the program, in addition to a small sliver of interest. The extra money this quarter couldn’t come at a better time, as analysts see few catalysts and numerous overhangs and headwinds when it comes to bank performance.  The pandemic was only about a month old when the first...