Editing Royal Bank of Canada (section)

=== Interest Rate Risks ===

* Arguably, the biggest factor affecting the banking sector is the high interest rate environments. Central banks of developed countries have gone through a process of aggressive rate hikes over the past year to combat persistent inflation. However, it is expected that the central banks are approaching the end of their current cycle of rate increases, for example, even though the Fed raised the interest rates to 5.5%in the recent meeting, it is expected that this is the last rate hike. 
* The lagged effects of aggressive rate hikes are beginning to show, with easing inflation but mild recessions expected in some of the large global economies.
* We have already seen a rise in the provisions for Gross Impaired Loans, Allowances for Credit Losses and Write-Offs in Credit Cards and Personal Loans