1.   This could further hurt local banks, already reeling from heavy stock losses last year.

2.   An increase in interest rates can hurt banks by lowering demand for loans and by narrowing profit margins on current loans.

3.   Banks are hurt by higher rates, because they reduce demand for credit, and could result in corporate defaults -- and therefore losses for banks.

4.   Banks were also hurt by earlier reports that the central bank was worried about their ability to procure funds overseas.

5.   Banks are hurt by falling rates, because they reduce demand for credit, and could result in corporate defaults -- and therefore losses for banks.

6.   Banks were also hurt by speculation profit growth will be lower because of Asian economic problems.

7.   Banks are hurt by the currency falls since they face increased loan defaults as companies -- especially those with foreign debts -- lose money in the currency turmoil.

8.   Banks were hurt by concerns the Bank of Canada may raise interest rates to support the dollar.

9.   Banks were also hurt by concern the Bank of Canada may raise interest rates to support the dollar.

10.   A rate squeeze also hurts banks by increasing the risk of defaults among its corporate clients.