Dismal's Smacks

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📈 Macroeconomics

July 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices. Banks plan to further tighten lending standards across all loan types.

July 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices. Banks plan to further tighten lending standards across all loan types.

Why? Expected decline in collateral value, Anticipated decrease in credit quality, Predicted liquidity challenges, & Deposit Outflows. https://www.federalreserve.gov/data/documents/sloos-202307-fullreport.pdf Table 1 (PDF) | Table 2 (PDF) | Charts (PDF) Wut Mean?:Commercial and Industrial (C&I) Lending: * Banks tightened standards for C&I loans

Heartland Tri-State Bank of Elkhart, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Called it!

Heartland Tri-State Bank of Elkhart, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Called it!

Source: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/heartlandtristate.html Heartland Tri-State Bank of Elkhart, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a purchase and assumption

Commercial and Industrial loans slide for the second week in a row. Commercial and industrial lending has fallen for four months in a row, yet GDP up 2.4% last quarter?

Hello and HAPPY FRIDAY Superstonk, I hope everyone's weekend is off to a great start! Reminder, while banks have the liquidity fairy, 'we' get the promise of 2 more rate hikes this year, Atlanta Fed President Raphael Bostic yet again enrichens himself inappropriately from his position.

Agencies update guidance on liquidity risks and contingency planning. "The updated guidance encourages depository institutions to incorporate the discount window as part of their contingency funding plans." The liquidity fairy is now ENCOURAGED?

https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230728a1.pdf * The Fed * Federal Deposit Insurance Corporation * National Credit Union Administration * Office of the Comptroller of the Currency Wut mean?: Given the unpredictable financial events in the first half of 2023, it's emphasized that depository institutions should have robust contingency

In June, folks earned a bit more in, spent more, causing PCE, excluding food and energy (the Fed's barometer for if inflation is still growing) to jump up .2% for the month and 4.1% year-over-year. Still more than DOUBLE the Fed's target of 2%!

In June, folks earned a bit more in, spent more, causing PCE, excluding food and energy (the Fed's barometer for if inflation is still growing) to jump up .2% for the month and 4.1% year-over-year. Still more than DOUBLE the Fed's target of 2%!

https://www.bea.gov/news/2023/personal-income-and-outlays-june-2023 Wut mean?: * In June, people earned $69.5 billion more, which is a 0.3% monthly rise--more money earned more money to spend, adding to inflation... * Prices of things people bought (PCE price index) went up slightly by 0.2%. Even if we

Liquidity Fairy Alert! Bank Term Funding Program usage UP 2.1% AGAIN ($105.078B vs $102.927B on 7/19), marking the 8th straight week over $100B.

Liquidity Fairy Alert! Bank Term Funding Program usage UP 2.1% AGAIN ($105.078B vs $102.927B on 7/19), marking the 8th straight week over $100B.

This looks more and more like there's an over-reliance on Fed Funding--growing faster than inflation 'should be'. I believe BTFP is a moral hazard. Good afternoon Superstonk, HAPPY almost Friday! Borrowing from the Bank Term Funding Program hit a NEW all time high--the 8th straight week

The Fed announces the individual capital requirements for all large banks, effective on October 1. The minimum capital requirement is 4.5 percent; The stress capital buffer requirement is at least 2.5 percent. Buckle up!

The Fed announces the individual capital requirements for all large banks, effective on October 1. The minimum capital requirement is 4.5 percent; The stress capital buffer requirement is at least 2.5 percent. Buckle up!

Source: https://www.federalreserve.gov/publications/files/large-bank-capital-requirements-20230727.pdf Wut mean?: * Following its stress test earlier this year, the Federal Reserve Board today announced the individual capital requirements for all large banks, effective on October 1. Large bank capital requirements are in part determined by the Board's stress