Financial institution shares have confirmed resilient in the course of the pandemic. However as uncertainty over the Omicron Covid-19 variant coincides with a altering regulatory image, that resilience is being examined anew.
Massive lenders had been among the many hardest-hit shares available in the market’s intense response to the Omicron variant final week, with S&P 500 banks dropping practically 4% on Friday, far more than the general index. In some respects, this doesn’t observe: Issues that harm financial institution shares because the pandemic and lockdowns gathered momentum final 12 months included the suspension of buybacks, a plunge in charges and a surge of credit score concern.
