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Bank of America focuses on loan growth as rate hikes fade into the distance

admin by admin
July 17, 2021
in Loans
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Bank of America focuses on loan growth as rate hikes fade into the distance

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Its stock was down 5% in midday trading.

Analysts view Bank of America as the most exposed to rates among large U.S. banks. Management has shifted strategies multiple times to perform better, but rate changes have been nearly impossible to predict for more than a decade, as policymakers have responded to various crises since 2008, including the coronavirus pandemic that began last year.

Bank of America Chief Executive Brian Moynihan and Chief Financial Officer Paul Donofrio focused on positive trends during calls with journalists and analysts.

“We’re not traders or a hedge fund,” said Donofrio. “We are deploying our excess liquidity in a prudent way over time and we are always balancing our need to have liquidity.”

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