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Corporate Borrowers Feeling 'Unease'

At Morgan Stanley financials conference, banks reported that corporate clients are cautious about borrowing because of concern over trade and interest rates.

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Several banks at Morgan Stanley’s financials conference—including Citizens Financial Group and Fifth Third Bancorp—said that corporate borrowers are becoming more cautious due to uncertainty about trade and interest rates, along with “overall economic unease.”

That may “suggest future pressure on loan growth,” Morgan Stanley analyst Ken Zerbe wrote in a note on midcap bank takeaways from his firm’s event, which was held this week. He added that executives were “quick to point out” that commercial clients’ concern isn’t yet resulting in weak loan growth and that credit quality is still strong.

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