Nov 16 - Large regional U.S. banks are well positioned from both a credit and financial standpoint to withstand potential macroeconomic and regulatory risks in 2013, according to Fitch Ratings.
Fitch's stable outlook for its large regional bank portfolio is supported by strong liquidity, improving capital, asset quality, and profitability. Some individual banks with Positive Outlooks reflect their improving credit profiles.
The U.S. banking industry faces headwinds stemming from the weak economic recovery, higher regulatory-related costs, the low interest rate environment, and litigation. Although large regional banks are not immune to these issues, they are potentially better positioned than larger global trading banks or smaller regional and community banks.
Fitch views large regional banks as relatively better positioned given their sufficient scale to absorb increased compliance costs, and lower reliance on activities materially impacted by regulation, such as trading.
On Oct. 30, 2012, Fitch affirmed all 14 large regional banks as part of its bank periodic review with a few Rating Outlooks revised to Positive from Stable. Refer to the press release titled 'Fitch Affirms Large Regional Bank Ratings Following Industry Peer Review, Outlook Stable' for a summary of those actions.
The full report 'Large Regional Bank Periodic Review' is available at 'www.fitchratings.com.'