Showing posts with label banking. Show all posts
Showing posts with label banking. Show all posts
Monday, August 12, 2024

Banks from too small to too big - Is there room for innovation?

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From too small to survive to too big to fail, there has been a significant change in bank risk given the huge economies of scale and consoli...
Sunday, December 17, 2023

Bank risks - Not understanding risks

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  “Banks don’t go out of business taking risk, they go out of business levering the things that they’re told aren’t risky.” -  David Dredge ...
Saturday, April 29, 2023

Reread "The Bankers' New Clothes" - Still a fresh look at banking

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  It is 10 years since The Bankers' New Clothes was written by two of the best bank finance professors. It was supposed to explain the r...
Monday, March 20, 2023

Disintermediation - A word very relevant for banking today

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  Financial disintermediation has always been an important topic for financial institutions, but it has not been the focus of research when ...
Thursday, March 16, 2023

Silent bank runs - Is there a need for withdrawal restrictions

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  When we think of a bank panic, the image that comes to mind is a long line of desperate depositors all scrambling for their money. Deposit...
Monday, March 13, 2023

Panics - Is the SVB event another perfect storm?

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  Robert Bruner and Sean Carr laid out 7 reasons in their book The Panic of 1907  why 1907 was a perfect storm for bank runs and a massive f...
Sunday, March 12, 2023

Bank risks and deposits - Looking at insured and uninsured deposits

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  An important issue with the SVB bank failure was the run on the bank with billions flowing out before the government took control. All dep...

Bank failures always the same: The case of SVB

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“ Happy families are all alike; every unhappy family is unhappy in its own way .” - Anna Karenina It is one of the most famous lines by Leo ...
Friday, July 22, 2022

Declining margin, leverage, and big unwinds - A result of rising interest rates

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Leverage is a core to the financial system as funds flow from those who have excess savings with unclear views to those that have a savings ...
Tuesday, October 19, 2021

Deposits up and loans down - Is this a healthy bank environment?

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C&I loans at banks are only 3% higher than before the pandemic and have fallen 20% from the peak levels in the second quarter of 2020. B...
Sunday, August 22, 2021

Money, money everywhere but in the loan market

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With the Fed still buying $120 billion in Treasuries and mortgages every month, short rates still close to zero and real rates solidly negat...
Monday, July 26, 2021

Collateral shortage and reverse repo

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The US is different from other financial markets because so much of financing is outside the banking system. Bank lending is more important ...
Saturday, August 22, 2020

The complex relationship between banks and the Fed

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The last financial crisis was focused on ensuring the integrity of the banking system to support the real economy. Massive liquidity a...
Wednesday, January 22, 2020

Financial Stability Board Report - The shadows of banking are big

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The Financial Stability Board (FSB) just released their new study  Global Monitoring Report on Non-Bank Financial Intermediation 2019 ...
Friday, December 6, 2019

Bank regulation getting better, but will it be enough?

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Where is the next financial crisis going to come from? This issue is always on the minds of investors. While it come from the banking s...
Friday, November 8, 2019

Senior Loan Officer Survey - No real change over the quarter

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All the talk can be about what whether the Fed is lowering interest rates, but if credit conditions are getting tighter because banks ar...
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Monday, October 29, 2018

Rising interest rates on loans - Current numbers don't show a change in standards

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The channels of monetary policy are more important for any investigation of the macro economy. This is one of the key lessons from t...
Thursday, February 2, 2017

Banking and speculation - all a matter of opinion?

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"When as a young and unknown man I started to be successful I was referred to as a gambler. My operations increased in scope. Then ...
Sunday, January 1, 2017

Divergence in bank performance between US and EU - so what?

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The one take-away from the Great Financial Crisis has been the importance of financial intermediation, banking. When banking is d...
Monday, October 17, 2016

The End of Alchemy - the real take-aways

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I finished reading  The End of Alchemy: Banking, the Global Economy and the Future of Money  and came away with some useful but simple ...