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Climate and capital: some outstanding issues

BankUnderground

There is a lively debate about whether and how capital regulations for banks and insurers should be adjusted in response to climate change. Incorporating climate-related risks into the capital regime will require a reliable methodology to measure these risks. Marco Bardoscia, Benjamin Guin and Misa Tanaka.

Capital 97
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Community Bank CEO Outlook 2022: Your priorities for the new year

Independent Banker

What changes will 2022 bring? And as local economies continue to stabilize and many challenged industries bounce back, 2022 may be the year community bankers put the rubber to the road by revisiting goals and turning them into action items. What will drive profit in 2022? Janet Silveria, Community Bank of Santa Maria.

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Profits in a time of inflation: some insights from recent and past energy shocks in the UK

BankUnderground

Some broad measures suggest increasing profits, but conflate market and non-market sector dynamics and omit important corporate costs. This measure has been declining since the start of 2022, consistent with evidence from historical energy shocks. We focus on the corporate sector and exclude self-employed and non-market sectors.

Capital 57
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Managing Stagflation Credit Risk in Banking – Part III

South State Correspondent

In a stagflation environment, as interest rates rise and cash flow (earnings before interest, taxes, depreciation, and amortization (EBITDA), or net operating income (NOI)) decreases, the borrower’s capacity to service debt as measured by the debt service coverage ratio (DSCR) decreases rapidly. A loan starting at 1.20X DSCR dips below 1.0X

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Profits in a time of inflation: what do company accounts say in the UK and euro area?

BankUnderground

Company accounts provide a window into how profits have evolved Large companies that are listed on the stock market publish company accounts at regular intervals, which give a summary of their operating performance. The profit measure we use is earnings before interest and taxes (EBIT), which is a standard accounting measure.

Company 102
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Bankers: Can You Create a Culture of Operating Discipline Even if You Have No or Few Shareholders?

Jeff For Banks

Source: S&P Capital IQ for Banks-Savings Banks and Credit Unions between $1B-$10B in total assets. YTD=June 30, 2022. Even though they pay no federal corporate income taxes? Retained earnings is their least expensive form of capital. In some cases, their only form of capital. CUs was 2.86%. A 59 bps difference!

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New Carro Hire Shows How Vehicle Subscriptions Are Growing

PYMNTS

As digital and mobile technology changes the automotive market, vehicle subscription and online marketplace businesses are also growing, and undergoing changes. According to the report , the deal comes as Carro raised some $30 million in fresh capital. Ford Retreat. Proof of that comes from Ford.

Nashville 130