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Banking Stress

All articles tagged with #banking stress

finance1 year ago

"Yellen Warns of Banking Stress and Losses from Empty Office Buildings"

Treasury Secretary Janet Yellen stated that high commercial real estate vacancies may cause stress for smaller banks, but she does not see them as a systemic risk to the financial system. Yellen highlighted the manageable nature of the issue and emphasized the soundness of the US financial system. She also discussed concerns about non-bank mortgage lenders and the health of the US economy, noting that inflation is slowing while wages continue to grow.

via CNN|
#banking-stress#commercial-real-estate#finance
finance1 year ago

"Assessing New York Community Bank's Financial Health Amid Stock Plunge and Credit Downgrade"

New York Community Bancorp's stock has plummeted by 60% and Moody's downgraded its credit grade to junk status, raising concerns about its viability. The bank reported a surprise loss and significant loan losses, partly attributed to its acquisition of assets from Signature Bank. While the stock's decline is not a definitive indicator of the bank's failure, concerns are mounting as uninsured deposits represent a large share of its total deposits. Analysts emphasize that a bank's deposit flows are a better gauge of its viability, but NYCB has not provided updates on this. The upcoming annual report may shed more light on the bank's deposit flows, and regulators are closely monitoring the situation amid worries about potential financial stability risks from commercial real estate.

via CNN|
#banking-stress#commercial-real-estate#deposit-flows
finance2 years ago

Fed Officials Hint at Pause in June Rate Hike Decision

Federal Reserve Governor Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker suggested that the central bank could pause rate hikes at its next policy meeting in June. The comments come as the markets raise their expectations for a rate hike in June following the release of new labor market data showing that job openings in April rose to their highest level since January. Jefferson and Harker emphasized that a pause in June wouldn't necessarily mean the Fed was done hiking rates. Jefferson also noted that higher interest rates and lower earnings could test the ability of businesses to service debt, while Harker said he wanted to look at two key pieces of data: the May jobs report due out Friday and another read on inflation via the consumer price index on the first day of the Fed's next policy meeting, June 13.

via Yahoo Finance|
#banking-stress#economic-outlook#federal-reserve
finance2 years ago

Banking Stress Increases Risk of U.S. Recession, Warns Fed's Kashkari

Minneapolis Fed president Neel Kashkari has said that recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. Kashkari, who has been among the most hawkish Fed policymakers in advocating higher interest rates to fight inflation, said it remained too soon to gauge the size of the “imprint” bank stress will have on the economy, and therefore too soon to know how it might influence the next interest rate decision of the Federal Open Market Committee.

via Yahoo Finance|
#banking-stress#credit-crunch#finance
finance2 years ago

ECB faces uncertainty and criticism over interest rate strategy.

Credit Suisse's announcement that it will borrow up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence has eased some pressure on Europe's anxious banks but leaves the European Central Bank in a dilemma over whether or not it will aggravate the situation if it goes ahead with a planned interest rate hike on Thursday. The banking turmoil surrounding the failure of Silicon Valley Bank at the weekend and Credit Suisse's near-death experience question the wisdom of that if there's a risk of a credit crunch from the banking stress anyway.

via Reuters.com|
#banking-stress#credit-suisse#european-central-bank