US banks prepared for record profits

US banks prepared to receive record earnings in the results of 2021, writes CNBC. This will be possible thanks to the restoration of the national economy and the financial market.

According to the forecast of the International Finance Institute (IIF), the record profit of credit institutions will be folded from two components: interest (on loans) and commission income, as well as revenue from trade and investment operations.

thanks to the active support of the economy from the state (in the form of a quantitative mitigation program from the Federal Reserve System and the Package of Financial Assistance from the Ministry of Finance), the banking sector received additional resources for lending, and the company and households – for increased costs. All this led to the restoration of demand and growth of the stock market.

Shares of banks themselves also rose in price. Since the beginning of the year, Goldman Sachs has risen in price by 40.8 percent, Bank of America – by 40.4, JPMorgan – 29.3 percent.

At the same time, some analysts fear that due to the growing Fed inflation, the monetary policy will tighten the monetary policy, increase the base rate and will turn the program of quantitative easing, as a result of which the provision of additional liquidity of the economy will cease. However, the regulator management assures that it will not resort to such measures, with which IIF.

/Media reports.