Lilac Financial ’s Post

HSBC has reduced its mortgage rates, joining Barclays and NatWest in response to potential summer base rate cuts by the Bank of England. HSBC's rate cuts start Wednesday, with brokers predicting more lenders will follow. Despite these reductions, borrowers still face high costs, with many expecting significant increases in monthly repayments when current deals expire. Average rates for two-year and five-year fixed deals are at 5.96% and 5.53% respectively, per Moneyfacts. Lenders' rate cuts are seen as minor steps amidst overall high rates. Approximately 1.6 million borrowers on cheap fixed-rate deals will see them expire this year. Activity in the housing market is subdued as buyers await political certainty. The Bank of England's next interest rate decision on August 1 may influence further rate cuts. Despite optimism, experts caution that falling inflation news may be temporary, affecting future rate decisions. #cardinalrock #UKproperty #TenantRights #propertyinvestment #buytolet #realestate #realestatenews #UKHousingMarket #HousePrices #MortgageRates

🏦 Banking Industry Challenges 🏦 High interest rates continue to pressure the US banking system, leading to 63 "problem banks" and $517 billion in unrealized losses, according to the FDIC. The upward pressure on mortgage rates significantly impacts the banking sector, raising concerns about financial stability. 🔗 Read more on Business Insider: https://bit.ly/3z3HfWF #Banking #InterestRates #FDIC #FinancialStability #MortgageRates

The next banking “crisis” won’t be at a GSIB level, rather, at the regional and community levels. However, I still maintain that the fear that has been spread is largely over stated. Lenders have the ability to modify terms to work for borrowers. These modifications will be MUCH easier though, in a lower interest rate environment. What everybody keeps forgetting in the inflation metric, is how rates continue to affect banks and other lenders. At some point high rates are going to bring lending to a halt. And that’s not going to be a fun sight to see. “Across all US banks with over $100 billion in assets, commercial real estate represents 12.5% of their aggregate loan portfolios, according to an analysis by S&P Global Ratings. But for banks with less than $10 billion in assets, the sector represents 38% of their loan portfolios.” #goodluckhavefunyall #cre #banks

BREAKING NEWS: MPA is delighted to reveal the top-performing banks in the 2024 Brokers on Banks survey. Brokers across Australia were asked to rate the performance of banks in the last 12 months across 10 criteria. Coming out on top for the third running was Macquarie Bank, part of Macquarie Group. The bank's broker channel is led by Wendy Brown head of broker sales. Read the story here: https://lnkd.in/gwfTEVtJ To discover all the Brokers on Banks winners and what brokers had to say, read the full report here: https://lnkd.in/gtcgqwyn #brokersonbanks #mortgageindustry #mortgagebrokers #bankingindustry #bankingnews

📉 US Banking System Faces Rising Unrealized Losses 📉 New FDIC data reveals unrealized losses in US banks have surged to over half a trillion dollars, primarily due to exposure to the residential real estate market. These losses, driven by higher mortgage rates, mark the ninth consecutive quarter of significant increases since early 2022. Key points: 1. Unrealized losses increased by $39B to $517B in Q1 2024. 2. Number of problem banks rose from 52 to 63, with assets of $82.1B. 3. Ongoing challenges include inflation, volatile market rates, and geopolitical concerns. Despite these challenges, the FDIC maintains that the overall health of the banking system is stable but warns of potential credit, earnings, and liquidity issues ahead. #Banking #Finance #FDIC #EconomicOutlook #RealEstate https://lnkd.in/gKWW5erG

$512,900,000,000 in Unrealized Losses Hit US Banks As Number of 'Problem - https://lnkd.in/gyE57H7M The number of US banks with major issues is on the rise, according to the Federal Deposit Insurance Corporation (FDIC). The agency’s Second Quarter 2024 Quarterly Banking Profile shows the number of lenders on its “Problem Bank List” rose quarter-on-quarter from 63 to 66. It’s the fifth consecutive quarterly increase of

Axis Bank Q1 Results: Profit rises marginally by 4.1% YoY, NII at Rs 13,448 - https://lnkd.in/gVxzRYpe Axis Bank on Wednesday recorded a profit growth of 4.1 per cent on-year at Rs 6034.64 crore for the first quarter of FY25 in comparison to Rs 5797.10 crore posted during the corresponding quarter of FY24. The private sector bank recorded a total interest earned during the quarter at

🏦 One year after the regional bank crisis. What is happening? Here are the selected highlights from FDIC’s latest banking profile. 📌 "Unrealized Losses on Securities Declined to the Lowest Level Since Second Quarter 2022" The number remains elevated compared to historical levels. Even a paper loss, it triggered the confidence issue and bank runs last year. Fingers crossed that the regained trust with the system continues. 📌 "Domestic Deposits Increased for the First Time in Seven Quarters" Growth is from the term deposit, while noninterest-bearing deposits declined for the seventh consecutive quarter. The divergence happens as low income consumers have to spend money to keep up with inflation. 📌 "The Noncurrent Loan Rate Increased Modestly but Remained Below Pre-Pandemic Levels" Noncurrent loans are those in late stage delinquency (90 days plus) or in nonaccrual status. Credit card and commercial real estate loans are the largest contributors. 📌 "The Net Charge-Off Rate Increased and Slightly Above Pre-Pandemic Levels" The industry’s net charge-off rate increased 14 basis points from the prior quarter and 29 basis points from the prior year to 0.65 percent, 17 basis points above its pre-pandemic average. Overall, banks are doing all right, although certain segments continue to bear pressure. 💳 🏢 Source: FDIC. #consumercredit #riskmanagment #banking #deposits #loans 🔹 If you are interested to receive my regular updates/comments re. consumer credit, and a collection of my 2023 posts, check here >> https://lnkd.in/grHzN-Da

Wow, the banking sector really is taking a hit: Recent evidence from the FDIC that there are a substantial $517 billion in unrealized losses across the banking system. What are banks going to do about it? Even after the SVB crisis, the banking sector is still struggling. "These losses have been sparked primarily by a surge in interest rates over the past two years, which have driven down the price of fixed-income securities held by banks," according to the FDIC. This trend has particularly impacted residential mortgage-backed securities, with higher mortgage rates in the first quarter exacerbating the situation. The 30-year fixed mortgage rate has climbed to just over 7%, marking a sustained rise from approximately 6.6% at the start of the year. "This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates in the first quarter 2022," the FDIC continued. The report also points to an increase in the number of 'problem banks'—those receiving a CAMELS composite rating of four or five, indicating weaker financial strength. "The 63 problem banks in the first quarter represent an increase of 11 banks from the fourth quarter of last year," highlighting ongoing concerns within the sector. Despite this, the FDIC reassures that the situation is not alarming yet, as the proportion of problem banks remains within the typical range for non-crisis periods. But still, this is pretty dire: banks fundamentally need a new approach to navigate and manage risk. Learn more about what we're doing in Dainamic to use disaggregate data to understand exposure and risk, predicting expected losses so there are no surprises. #Banking #Economy #InterestRates #FDIC https://lnkd.in/ekJXGSTB

ASB follows ANZ lower - Interest.co.nz: Carded rate offers are the high end of the range. Moving to a challenger bank remains a real option to pick up even lower rates. But be careful with ...