Moody's downgrades US banking sector outlook to negative.

1 min read
Source: BBC
Moody's downgrades US banking sector outlook to negative.
Photo: BBC
TL;DR

Moody's has downgraded the US banking sector's outlook to "negative" from stable, warning of a rapid deterioration in the operating environment. The ratings giant has warned that some banks face risks of customer withdrawals and rising interest rates, which could expose banks to potential losses. The downgrade came after a run on deposits led to the collapse of Silicon Valley Bank, which was a key lender to technology firms. US regulators have taken over the bank and guaranteed deposits beyond the $250,000 level typically insured by the government.

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