Small Banks Are Struggling Just as the World Needs Them Most
- Moody’s placed four Korean regional banks on downgrade review
- U.S. regional lenders’ outlook challenging as loan losses rise
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Policy makers trying to prevent credit markets from freezing up have a huge challenge on their hands with regional banks.
Such firms should be best positioned to keep money flowing to community businesses like restaurants, travel agencies and gyms on the brink of failure because of the coronavirus pandemic. But regional banks themselves are increasingly at risk, riven by years of low margins, bad debt and now the threat of ratings cuts.