US Banks Feel the Pressure of Rising Operational Costs
The U.S. banking sector is entering 2026 under growing pressure as rising operational costs begin to eat deeply into profits. For years, high interest rates made it easier for banks to grow earnings. That period is now fading. What remains is a tougher environment where controlling expenses has become just as important as generating revenue. One of the biggest challenges banks face is shrinking net interest margins. After the Federal Reserve began cutting interest rates in late 2025, loan yields adjusted quickly. Deposit costs, however, have remained stubbornly high. Customers are slow to accept lower interest on their savings, forcing…
