bank

New capital requirements for banks proposed by the Fed – untangling their effects on financial institutions, the future of credit and the US economy

Download PDF Introduction A new and ambitious proposal launched by U.S. regulators has taken the commercial banking industry by storm, with mixed reactions from bank executives, analysts and politicians. Fed Chair Jerome Powell came out in support of the proposal but admitted that regulators have a difficult task ahead of Read more…

By BSIC, ago

Banks Do Not Live on Grandma Savings Alone

Download PDF Introduction Banks finance themselves through a variety of different sources with different maturities and credit risk characteristics, for example through deposits, equity, short-term wholesale funding, long-term unsecured bonds, covered bonds, and asset-backed securities (ABSs). Hereunder a representation of the main long-term funding sources for a bank in their Read more…

By BSIC, ago

Transaction cleared: consolidation trend in the Payments Processing sector

Introduction The payment processing industry has witnessed sincere interest from strategic and financial investors. Low barriers to entry have enabled newcomers to quickly establish themselves and net high valuation multiples. As a result, the sector is currently highly fragmented and presents good consolidation opportunities. What do we mean by Payment Read more…

By BSIC, ago

Is time up for Universal Banks? Deutsche Bank – Postbank case

Introduction As the financial system stabilises after the recent crisis, three distinct business models are emerging. First, focused retail institutions with a specific offering of products and services, such as American regional banks and Europe’s savings banks. Second, investment banks which also operate asset management businesses and private equity investments. Read more…

By BSIC, ago