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Financial Resilience

All articles tagged with #financial resilience

conflictfinance2 years ago

Hamas's Resilient Funding Amidst War with Israel

Despite facing relentless Israeli attacks, Hamas is expected to have a significant war chest due to its resilient and diverse finances. The group has established investments and income sources in various countries, including small businesses and real estate. Hamas also relies on an informal network of donations and has been supported by Iran, with estimates of annual contributions ranging from $70 million to $100 million. Qatar has pledged significant funding to Gaza, and while the international community funds UNRWA, cutting off Hamas completely is unlikely. The future of Hamas' finances will depend on the resolution of the Gaza conflict and who takes charge of providing for the refugees in the territory.

finance2 years ago

Regulators propose new rules for U.S. banks to mitigate failures and increase debt levels

U.S. banking regulators, including the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency, have proposed a new rule that would require large regional banks with over $100 billion in assets to issue approximately $70 billion in fresh debt. This move aims to enhance the resilience of the banking sector following the failures of three lenders earlier this year. The proposal would bring regional banks in line with Wall Street giants, which already have their own debt requirements. The rule, subject to industry feedback, would give banks three years to meet the new standard. Critics argue that the proposal should consider the complete costs and benefits and avoid damaging the institutions it seeks to strengthen. Additionally, regulators have proposed overhauling "living will" plans to ensure banks can be safely wound down after failing.

finance2 years ago

Major U.S. Banks Increase Dividends Following Successful Fed Stress Tests

Five major US banks, including JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, and Citigroup, have announced plans to increase their quarterly dividends after passing the Federal Reserve stress tests. The dividend increases range from 2 cents to 25 cents. The results of the stress tests demonstrate the financial resilience of these banks and reinforce the divide between industry giants and smaller regional rivals. However, banks are still preparing for new, stricter capital requirements from the Fed.

finance2 years ago

US Banks Pass Severe Recession Stress Test, Avoid Credit Crunch

The United States Federal Reserve has announced that all 23 of the country's largest banks have passed its stress tests, indicating their ability to survive a severe recession. The stress test revealed relative weakness among midsize and regional banks. The Fed has hinted at the possibility of making future stress tests more challenging. The tests simulate severe economic scenarios, including a global recession causing significant declines in property prices and a spike in unemployment. The banks participating in the stress tests would collectively face losses of $541 billion in the worst-case scenario.