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Japan, S Korea to discuss FX swap deal in first finance talks for 7 years
Japan and South Korea will hold their first bilateral finance dialogue in seven years on Thursday, with both looking to mend strained ties as they face common geo-strategic risks from an increasingly assertive China and an unpredictable North Korea. Japanese Finance Minister Shunichi Suzuki and his South Korean counterpart Choo Kyungho are expected to agree on the need to restore a lapsed bilateral currency swap arrangement, according to government officials with knowledge of the agenda for the talks in Tokyo. The swap deal expired in 2015 amid worsening relations over issues related to Japan's wartime occupation of ... (full story)
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President Joe Biden touted his economic agenda, contrasting it with the small-government philosophy Republicans have espoused for decades, as he sought to persuade skeptical ...
The Federal Reserve Board on Wednesday released the results of its annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession. "Today's results confirm that the banking system remains strong and resilient," Vice Chair for Supervision Michael S. Barr said. "At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses." The Board's stress test is one tool to help ensure that large banks can support the economy during economic downturns. The test evaluates the resilience of large banks by estimating their capital levels, losses, revenue and expenses under a single hypothetical recession and financial market shock, using banks' data as of the end of last year. All 23 banks tested remained above their minimum capital requirements during the hypothetical recession, despite total projected losses of $541 billion. Under stress, the aggregate common equity risk-based capital ratio—which provides a cushion against losses—is projected to decline by 2.3 percentage points to a minimum of 10.1 percent. This year's stress test includes a severe global recession with a 40 percent decline in commercial real estate prices, a substantial increase in office vacancies, and a 38 percent decline in house prices. The unemployment rate rises by 6.4 percentage points to a peak of 10 percent and economic output declines commensurately. The test's focus on commercial real estate shows that while large banks would experience heavy losses in the hypothetical scenario, they would still be able to continue lending. The banks in this year's test hold roughly 20 percent of the office and downtown commercial real estate loans held by banks. The large projected decline in commercial real estate prices, combined with the substantial increase in office vacancies, contributes to projected loss rates on office properties that are roughly triple the levels reached during the 2008 financial crisis. The $541 billion in total projected losses includes over $1 post at 4:30pm: US Fed Says 2023 Stress Test Shows Large Banks Well Positioned to Continue Lending in a Severe Recession Fed Says Test Showed Large Bank Trading Books Were Resilient to a Rising Interest Rate Environment post at 4:32pm: FEDERAL RESERVE: ALL 23 BANKS IN THE STRESS TESTS REMAIN ABOVE MINIMUM CAPITAL REQUIREMENTS IN WORST-CASE SCENARIO. post at 4:32pm: US Banks Pass Fed Stress Test, Clearing First Hurdle For Payouts - Banks Allowed To Announce Payouts Starting Friday
Sterling was a notable laggard in the G10 space at the close of London today. The pound’s widespread weakness can be attributed to comments from Bank of England (BoE) Governor ...
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In the world of finance and economics, reliable indicators are invaluable for assessing the health of industries and making informed trading decisions. One popular indicator is ...
post at 6:32pm: Yellen: US Will Continue to Take Actions to Protect National Security Interests with Regards to China Even if That Imposes Some Economic Cost post at 6:35pm: US Treasury Sec Yellen: Monitoring Commercial Real Estate Sector Very Closely - Expects Some Losses To Banks From Changes In Commercial Real Estate
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- Posted: Jun 28, 2023 5:38pm
- Submitted by:Category: Fundamental AnalysisComments: 0 / Views: 1,520