Will Berkshire Hills' Coronavirus Relief Translate to More Business?
The stock market is in a period of great uncertainty right now, and banks are not immune. The banking sector has experienced a year-to-date loss of almost 40% through Monday's close, which is well off the S&P 500's losses of around 29%.
Banks, like other businesses, are temporarily closing locations for the sake of social distancing protocols. And banks have been affected by the Federal Reserve's decision to reduce interest rates to the 0% to 0.25% range, as lower interest rates reduce net interest income.
Berkshire Hills Bancorp (NYSE: BHLB) has felt the effects, with a stock price that's down about 64% year to date. But investing is about the long term, so it's critical to look beyond the current environment. Banks will bounce back when the coronavirus crisis subsides. But for now, Berkshire Hills has made some moves to provide relief for its customers and instituted initiatives that show its commitment to its communities.
Source Fool.com
