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US bank shares fall ahead of credit card rate cap deadline

US bank stocks have dipped as investors watch an approaching deadline for a proposed credit card interest rate cap.

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New York Stock Exchange on Wall St with huge Stars and Stripes flag across the front
New York Stock Exchange on Wall St with huge Stars and Stripes flag across the front. Picture: Alamy

By Camille Bidard

US bank stocks have fallen as investors await a key deadline linked to a proposed cap on credit card interest rates.

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The Trump administration has said the measure, which would limit rates to 10 percent, is designed to improve affordability for customers and reduce the cost of borrowing.

However, banks have warned that a strict cap could have unintended consequences.

They argue it may reduce the availability of credit, as lenders could become more cautious about who they offer credit cards to, adding uncertainty for both the industry and consumers.