Higher capital requirements will have consequences, says Bank of America’s CEO.
Bank of America CEO Brian Moynihan advises caution in implementing Basel III’s capital standards to maintain global competitiveness. He believes the playing field is level and that restrictions should be carefully administered to prevent the US from being less competitive. U.S. banking authorities will propose tighter bank capital requirements for banks with $100 billion or…
A Proposal of new regulators for US banks
Before the plan’s unveiling, banks and Republican members of Congress expressed similar worries, indicating a long and difficult road to enacting the huge change. Regulators will accept comments through November 30 and apply the new guidelines by mid-2028. The proposed rule would implement a 2017 Basel Committee on Banking Supervision agreement to change how banks…
Jerome Powell said regulator have a “difficult balance”
A trio of U.S. bank regulators proposed raising capital by 16% to change how banks calculate risk and how much capital they must retain as a cushion. The Fed, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency decided to release the over 1000-page proposal for public comment, which the banking industry…
US banks need billion of capital to defend against risk
U.S. authorities want big banks to set aside billions more in risk capital. The Fed, FDIC, and OCC released the idea for public comment, which the banking industry lambasted. Such a large increase could require them to eliminate services, raise fees, or both. Fed Chair Jerome Powell supports the proposals but quickly outlined significant concerns.…
China Debt to GDP Ratio reach ATH
China’s debt-to-GDP ratio reached a record in the second quarter, with total debt rising to 281.5% of GDP. This suggests China is not facing a “balance sheet recession,” but reduced borrowing growth will hamper GDP growth. The macro-leverage ratio rose to 283.9% in the second quarter, but household debt is rising at half the rate…
Dollar Slips as Rates hike on FOMC decision
The Federal Reserve’s 22-year rate hike and data-dependent additional raises may be the last of the cycle, but investors believe it’s done and cut bets on more this year. The European Central Bank’s 25-basis-point rate hike may be its last this cycle. Stock market bulls are encouraged by rising US and European rates and a…
China has extended due date over $2.4 billion loan for pakistan
Pakistan’s finance minister announced China has extended a $2.4 billion loan for two years to help the country overcome its economic crisis. The Chinese EXIM Bank rolled over the principal amounts of the $2.4 billion loan, which Pakistan plans to repay in 2024 and 2025. Pakistan plans to pay interest in both years. Pakistan’s foreign…
The C2C money transfer business have the biggest revenue for Western Union Co
Western Union Co. increased its annual profit projection by 4% due to strong cross-border transactions in the second quarter. The company’s C2C business grew 4% in the three months ended June 30, with migration to countries with better economic prospects being the main source of revenue. The company estimates 2023 adjusted earnings per share of…