Fitch Ratings 2019 Outlook: U.S. Banks

...Fitch Sector Outlook: Stable Fitch Ratings views U.S. bank ratings as broadly stable with most banks carrying a Stable Rating Outlook. This incorporates a view of some modest asset quality deterioration from historically low levels. Capital levels for the global systemically important banks (GSIBs) will remain elevated, while we expect more aggressive capital distributions and requests from their smaller peers. Fitch also expects liquidity to remain solid, although monetary policy tightening may exert some pressure on liquidity needs, particularly for the G-SIBs. Rating Outlook: Stable Fitch does not see broad-based upside to U.S. bank ratings, given the preponderance of Stable Rating Outlooks. U.S. bank ratings and Rating Outlooks would be sensitive to how institutions respond to any easing of regulatory standards. For example, an increasing risk appetite, materially raising shareholder returns or decreasing liquidity levels would be viewed negatively and may impact ratings over time....

Outlook