Patricia Wilson’s Post

🏋♀️Bank stress tests are a crucial evaluation helping prevent bank failures, maintain investor confidence, and support economic stability.   🏦 What has the latest Fed’s test meant for banks and the financial world?   👉 Read our latest post to find out: https://lnkd.in/dcHur7Sc   👉 Don't miss out on valuable insights! Subscribe to our newsletter now: https://lnkd.in/e2CXdTaK   #banking #finance #stresstest

On February 23, we warned on looming third wave of the banking crisis and mapped the U.S. banks most exposed to CRE losses. You want to know, who was at the top of that list? You guessed it, #nycb (Flagstar Bank)! However, there are many banks in a much more worrying situation. GnS Economics #bankingcrisis #commercialrealestate #regionalbanks https://lnkd.in/dTbcACes

Join CFRA Research analysts for a webinar on “U.S. Banking State of Affairs - What a Difference a Year Makes.” We’ll discuss investment views on select #banks, including the #FederalReserve's move from rate hikes to cuts. We’ll also examine how the #BlackSwan events can impact the #financial sector and provide our insight into banking regulations, such as the Basel III Endgame and potential leadership changes. Register today. https://bit.ly/3UCb6hI

U.S. bank consolidation poised to rise: Fitch - https://lnkd.in/gE6K-d_w In the past few years, consolidation in the U.S. banking industry has slowed amid the economic and financial uncertainty that accompanied the pandemic, and the effects of a sharp tightening of monetary policy that followed. Higher rates resulted in reduced liquidity, shifts in the mark-to-market valuations of banks’ securities portfolios,

Why do banks fail? In today's post (the first in a series of three), the authors study more than 5,000 bank failures in the U.S. from 1865 to the present to understand whether failures are primarily caused by bank runs or by deteriorating solvency. The authors document that failing banks are characterized by rising asset losses, deteriorating solvency, and an increasing reliance on expensive noncore funding. They also find that problems in failing banks are often the consequence of rapid asset growth in the preceding decade. https://nyfed.org/3V0r1FK

Study of more than 5,000 US bank failures in the from 1865 to the present to understand whether failures are primarily caused by bank runs or by deteriorating solvency—

News: 'Problems in how banks carry out valuations on CRE', states analysis The way banks carry out valuations is having "knock-on" effects on the commercial property market, an analysis has suggested. The analysis by European banking supervisors comprising of the European Central Bank (ECB) and national supervisors of the participating countries, states "with higher interest rates and lower demand weighing on key segments, borrowers are more likely to face debt servicing challenges" and "prudent collateral valuation is therefore highly important". Facilitate Magazine RobinsonsFM #robinsonsfm

An insightful study that analyzes over 5,000 U.S. bank failures from 1865 to 2023. The research identifies three critical trends: 1. 📉Failing banks typically show rising nonperforming loans, declining net income, and worsening solvency before their collapse. 2. 💰These institutions increasingly rely on expensive and risk-sensitive noncore funding sources, like time deposits and wholesale funding. 3. 🏗️Many follow a boom-bust pattern, with rapid asset growth—especially in real estate lending—before experiencing a sharp downturn.

Given the level of volatility and uncertainty in today’s financial markets, expanding the range of scenarios that banks must consider seems like a step in the right direction. But do the Federal Reserve's enhancements to this year’s stress test go far enough? Alla Gil offers her thoughts in #RiskIntelligence. Give a read today. https://lnkd.in/e-rp553Z #GARP #FRM #banking #federalreserve #scenarioanalysis #liquidity #stresstesting

US Banks included in the Federal Reserve's annual stress test are questioning methods behind the assessment. This once reliable tool used to project data on financial gains and losses may need to be reevaluated. #investment #banking #realestateinvestment #keyinvestment #finance