The U.S. Federal Reserve has launched a cycle of interest rate hikes to provide support for the strong U.S. dollar. It is optimistic regarding the interest rate spread of U.S. dollar loans.
The Federal Reserve announced a 2-yard rate hike a few days ago. The market expects a high probability of another 2-yard rate hike in June. Under the circumstance that the U.S. is “rising and rising without interest”, it is expected to further increase the interest rate spread of overseas lending, according to estimates from China Credit Ratings. , under the trend of raising interest rates, the Bank’s lending this year is expected to get rid of the negative growth trend of the past two years, and the annual increase of regarding 5%.
Optimistic regarding foreign currency lending spreads better thanNew Taiwan DollarIn terms of lending, China National Bank has recently launched U.S. dollar premium deposits, especially public-stock banks that specialize in corporate finance. The first bank and Huanan Bank have recently launched related plans, offering interest rates that are superior to those offered by advertisers, attracting depositors to do so.
According to the statistics of the Financial Regulatory Commission, despite the disruption of the epidemic last year (2021), the profits of the overseas branches of China National Bank still increased by nearly 60% year-on-year, and this year, more US interest rate hike cycle assists. Under the trend of interest rate hikes by the central banks of Taiwan and the United States, it is estimated that the net income of banks will increase by regarding 1.7 to 1.8 billion yuan per year. Under the cycle of interest rate hikes in the United States, it is expected to further inject more interest income into the account.
However, it should be noted that despite rising interest rates, banks still need to pay attention to lending risks amid uncertainties such as inflation, geopolitics, and repeated epidemics. The ratios were 0.28% and 0.4%, respectively, which were still higher than the overall average overdraft ratio of the Bank of China.
The head of the bank said that at present, the key markets for bank lending are still concentrated in the United States, Hong Kong, China and Southeast Asia. For neighboring China, in the case of severe epidemics, it may affect industrial operations, and banks will pay close attention to the epidemic to repay customers. Ability to control the exposure level prudently to avoid stepping on thunder and eroding profits.
