In a new report, Fitch Ratings noted that U.S. banks will continue to have their short and long-term business strategies affected by a “lower-for-longer” interest rate environment.

Fitch said it believes banks will place additional focus on cost controls to improve operating efficiencies and extend balance sheet duration to stave off further margin compression while waiting for the Fed to increase short-term rates.

Even when short-term rates do rise, there are important variables that could significantly affect the ultimate earnings and capital positions of U.S. banks in a higher rate environment, Fitch said.