Banks have been steadily releasing reserves against bad loans, which has boosted their earnings reports. But with loan-loss cushions now heading back to pre-crisis levels, some analysts believe banks will have to slow reserve releases, adding pressure to profits already hit by slower growth and tighter rules.
The PowerShares KBW Bank Portfolio (KBWB) is based on the KBW Bank Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Index is a float adjusted modified-market capitalization-weighted index that seeks to reflect the performance of companies that do business as banks or thrifts that are publicly-traded in the U.S. The Index is compiled, maintained and calculated by Keefe, Bruyette & Woods, Inc. and is composed of approximately 24 companies representing leading national money centers and regional banks or thrifts.
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