The Corna virus crisis and its economic repercussions have had shocking effects on the performance of American banks.
According to Arabiya Net, the report of the Federal Deposit Insurance Corporation, published by the Wall Street Journal, showed that the income of American banks fell 70% in the second quarter of 2020 to $ 18.78 billion compared to With the second quarter with last year.
The Corona virus has left banks overwhelmed with liquidity, with no tools to employ them with the disruption of the economy and the decline in borrowing demand.
banks have committed billions of dollars to loan losses, and profit margins are at an all-time low.
income from bank fees has reached a record low.
Customers have flooded banks with unprecedented deposits, to the point where banks are expecting a longer and deeper recession than they had anticipated at the start of the pandemic.
Brian Furan, financial analyst at Autonomous Research, said banks were flooded with cash, and it was difficult to know what to do with them.
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