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The pro-cyclicality of capital ratios and credit supply, a tale of two sizes

BankUnderground

The reforms aimed to ensure that banks have sufficient capital resources to absorb losses and reduce the cyclical effects of bank capital (and regulation) on the supply of bank credit in stress. Additionally, regulators in various jurisdictions have been trying to create simpler (but not weaker) regulatory frameworks for small banks.

Capital 78
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What's With Regulator Agita Over Bank Commercial Real Estate Lending?

Jeff For Banks

And regulators are getting anxious. Reading between the lines, this bank is likely over the CRE guidance levels, and were probably getting grief from their regulators about it. The Great Recession lasted from the fourth quarter 2007 through the second quarter 2009, according to the National Bureau of Economic Research.

Lending 60
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Guest Post: FInancial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

This is because the economy has been gaining momentum, however modest, from the tax cuts and deregulation. annually since 2009, while the record expansion of the 1990s saw growth of 3.6%. As well as the economy has been doing from the momentum of tax cuts and reduced regulation, there are always looming issues.

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A Decline in Personal Savings

TrustBank

The BEA calculates the personal saving rate by subtracting taxes from personal income to arrive at “disposable personal income” and then subtracts personal outlays. By the 1990’s, improvements in technology and further changes to securities regulations made it easier for corporate customers to access financial markets directly.

US 52
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Banking's Top 5 in Total Return to Shareholders: 2017 Edition

Jeff For Banks

The Bank, Old Second National Bank, lost a whopping $156 million in 2009 and 2010. Their non-performing loans (NPL)/total loans ratio peaked at 12.54% in 2010, and between 2009-12, the Bank charged off over 11% of its loan portfolio. That got regulator's attention in the form of a May 2011 Consent Order (CO).

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Who does AML hurt?

Tomorrow's Transactions

According to a KPMG survey, the cost of compliance with anti-money laundering (AML) regulations grew “beyond expectations” for banks last year. The World Bank say that money laundering is between two and five percent of global GDP and in 2009 the World Bank calculated it to be four percent of global GDP. trillions (2.7%of

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Why Kenya’s Central Bank Notice on Bitcoin was Misinformed

Bankelele

On Tuesday, December 15th , the Central Bank of Kenya issued a public notice on bitcoin in the Daily Nation: CAUTION TO THE PUBLIC ON VIRTUAL CURRENCIES SUCH AS BITCOIN – it read. As such, they should be treated in the same manner, as there is no explicit regulation for virtual currencies in Kenya. Gone are the sloppy days of Mt.

Bitcoin 28