Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
So once again the banks get a helping hand from the FED, and depositors in the US are guaranteed to an unlimited extent. But what of moral hazard? And the markets now do not expect further rate rises, despite the inflation pressures in play. Yet perhaps there is a bifurcation between liquidity and rates, so … Continue reading “No Free Market Capitalism Here! [Podcast]”
So once again the banks get a helping hand from the FED, and depositors in the US are guaranteed to an unlimited extent. But what of moral hazard? And the markets now do not expect further rate rises, despite the inflation pressures in play. Yet perhaps there is a bifurcation between liquidity and rates, so … Continue reading “No Free Market Capitalism Here!”
I catch up with George again, and his “tin foil hat” as we go down the rabbit hole again to examine some more deep questions about the way things are. WARNING: We discuss the Santa “Myth” so be careful in kids earshot! And thanks to George for recording and editing the show. CONTENTS0:00 Start0:59 Education … Continue reading “Down The Rabbit Hole #4: Communism Versus Capitalism – Which One’s Free? [Podcast]”
I catch up with George again, and his “tin foil hat” as we go down the rabbit hole again to examine some more deep questions about the way things are. WARNING: We discuss the Santa “Myth” so be careful in kids earshot! And thanks to George for recording and editing the show. CONTENTS0:00 Start0:59 Education … Continue reading “Down The Rabbit Hole #4: Communism Versus Capitalism – Which One’s Free?”
The Australian Prudential Regulation Authority (APRA) today announced temporary changes to its expectations regarding bank capital ratios, to ensure banks are well positioned to continue to provide credit to the economy in the current challenging environment. Over the past decade, the Australian banking system has built up substantial capital buffers. The highest quality form of … Continue reading “APRA Drops Capital Requirements”
In a statement, the Reserve Bank of New Zealand says New Zealand’s financial system is sound, with strong capital and liquidity buffers, but faces significant uncertainties from the impacts of COVID-19. The Reserve Bank is announcing additional measures to support the provision of credit and market functioning. Reserve Bank Deputy Governor Geoff Bascand says the … Continue reading “RBNZ Delays Proposed Bank Capital Lifts; Supports Liquidity”
On 4 March, the Federal Reserve Board (Fed) finalized changes to its capital rules for US banks with assets greater than $100 billion. Via Moody’s. The final changes increase the flexibility banks have to payout capital more aggressively and will likely give bank management greater leeway to reduce the size of their management buffers and … Continue reading “Fed’s final stress capital buffer is credit negative for US banks”
The US Federal Reserve Board on Wednesday approved a rule to simplify its capital rules for large banks, preserving the strong capital requirements already in place. The “stress capital buffer,” or SCB, integrates the Board’s stress test results with its non-stress capital requirements. As a result, required capital levels for each firm would more closely … Continue reading “Federal Reserve Board Approves Simplified Capital Rules for Large Banks”
APRA remains in a low risk bubble, according to their paper today, which keeps the counter-cyclical buffer at 0. However they flag that may change ahead. I have to say this seems perverse, given the high debt levels and low economic performance and increased risks. Plain weird, and a million miles off the Reserve Bank … Continue reading “APRA flags setting countercyclical capital buffer at non-zero default level”
According to Moody’s, on 5 December, the Reserve Bank of New Zealand (RBNZ) announced the finalisation of its capital requirements for New Zealand banks. The RBNZ’s decision to raise capital requirements – although slightly watered down from its earlier proposal – is broadly credit positive, because it will make the banking system more resilient to … Continue reading “Impact Of New Zealand’s Stricter Capital Requirements”