The profits of global banks remain under pressure from weak headline economic growth and low interest rates, according to a report published on Wednesday by New York City-based Fitch Ratings.

The positive fundamentals in the banking sector “continue to be challenged by below-trend economic growth” and low, or even negative, interest rates in core markets, the Fitch report says.

“Weak growth exerts pressure on the quality of legacy assets while dampening demand for new credit. Low or negative rates make it more difficult to manage net interest margins, squeezing profits,” it adds.

Additionally, there are number of other downside risks facing the global banking sector, the report says, including post-crisis balance sheet troubles that are still being worked out, tougher regulation, and other issues.

“The ongoing impact of conduct risk penalties for certain entities, political uncertainty, regulatory changes, and country-specific or idiosyncratic event risks are likely to challenge banks globally in 2017,” says David Weinfurter, global group head of financial institutions at Fitch, in a statement.

On the upside, banks and banking systems around the world are now “materially less risky, with consistently improved credit fundamentals,” the report says. In particular, 80% of banks in developed markets have stable rating outlooks, 8% are positive, and just 12% are negative. The situation is a bit different in emerging markets, where 68% of bank outlooks are stable, 2% are positive, and 30% are negative.