Vault’s Post

The central bank has issued the preliminary guideline for the mergers and acquisitions of Banks and Financial Institutions. Key provisions include: >Temporary exemptions for maintaining essential ratios such as CRR, SLR, LCR, and NSFR. >A grace period will be allowed for weak banks to offset losses through acquiring a bank's income or through goodwill conversion. >Priority-based liquidity assistance will be extended through existing facilities, while the Central Bank will support with cash injections via purchasing long-term bonds. >Capital augmentation measures will be included as aid for issuing shares, perpetual bonds, and subordinated bonds to fortify financial standing. Although the newly issued policy aims to bolster the operational efficiency and to safeguard banking sector's stability; however, details concerning types of assistance which will require to be provided to address the overwhelming percentage of NPL is absent. Well, at least it's a start. A start to an exciting and unprecedented era in the Banking sector. Let's see how this policy supports the sector in the long run.

With now the current extraordinarily high % of regional banking exchange traded fund shares being short-sold (over 90%) along with a sizable collapse in the valuation of regional banks, are the short-sellers overstaying their welcome at this juncture? (4/25/24)

New York Community Bank's stock plunged today after it boosted reserves and cut its dividend in the fourth quarter to meet the tougher demands of running with the big banks - the need for additional capital to meet regulatory requirements. Latest from Phil Scipio and me for IFR. NYCB said the dividend cut and the sharp increase in loan loss provisions were part of the lender's preparations for its new life as a Category 4 bank. NYCB gained that status after it bought a large chunk of Signature Bank's assets last year after that bank collapsed at the start of the regional banking crisis of 2023. The acquisition pushed assets under management at NYCB above the US$100bn thereshold, making it subject to new capital and liquidity requirements proposed last year. Even before NYCB's results, analysts said banks with assets of just above US$100bn would need to aggressively grow to justify the additional compliance and capital costs that came with a Category 4 desgination. Otherwise, it might make more sense to pare down the bank and avoid that threshold altogether. https://lnkd.in/es6TgxUm

In 2000, there were ~8,000 U.S. banks. Today, that number has been reduced to ~4,000. Continuous headwinds suggest consolidation will persist. So, who should consolidate?  The prime candidates for consolidation are Banks with less than $80B in AUM due to scaling challenges; however, there is an additional “zone of caution.” Banks with ~$100B in AUM are subject to high capital regulatory costs without the full large bank scale benefits.    Banks with more than $120B in AUM have more optimal business structures to increase profitability even with higher regulatory standards.    #banks #regulation #consolidation #scale 

Since the observation below in April, the regional banking index has indeed rallied roughly 10%. Regardless, the % of regional banking exchange traded fund shares short-sold continues to register at an extreme elevated level of more or less 90% which begs the question once again, are the short-sellers overstaying their welcome? (5/13/24)

The world's safest banks 2023 - notice the top 10 banks are not base in the USA or UK. #banks #banking #worldsafestbanks https://lnkd.in/dVW4wYrK

These are the top 20 banks and thrifts with the most assets as of the end of December 2023. Check out the rankings to find out more about the performance and growth of these firms. #rankthebanks https://bit.ly/3W9dPA1

Bank of America Q3 "Unrealized Losses" were $131.6 billion ..... yes Billion! Will the Feds bail them out and purchase these HTM securities at face value? Who knows! Prized CRE tenanted by a bank? Doing a transaction with a banking partner? Find out what else is under the hood. Order your Bank Analysis and Scoring report from Megalytics today. Get in touch now https://lnkd.in/gccngP2N

These are the top 20 banks and thrifts with the most deposits as of September 30, 2023. Check out the rankings to learn more about the top-performing firms. https://bit.ly/42R5thD

Which Bank? . . is winning the Battle of the Banks? Quick 2-question Quiz on Aussie Banks - Q1 - Which of the big Aussie banks has had the largest % share price gain this year?    - No it's not CBA, despite all the media attention and hype Q2 - Which of the big banks has been the best for shareholders over the past one, two, three decades?    - No it's not CBA either, despite the widely held belief that it is! Which are the winning banks? - find out here! https://lnkd.in/gcimhuUg #investmentstrategy #investing #shares #sharemarket #wealthmanagement #portfoliomanagement #financialadvice #financialplanning #fire #banks #asx