Fed Governor Waller doubts need for climate-change tests on banks

Christopher Waller, governor of the US Federal Reserve, during a Fed Listens event in Washington, D.C., US, on Friday, Sept. 23, 2022. Al Drago | Bloomberg | Getty Images Federal Reserve Governor Christopher Waller on Thursday cast doubt on the need for special focus on how banks are preparing for climate change risks. While acknowledging […]

Are America’s regional banks over the worst of it?

More people are paying attention to America’s regional banks than ever before. But it is difficult to work out the state of their balance-sheets. Recent data from the Federal Financial Institutions Examination Council, a regulator, offer a glimpse. Our analysis suggests several regional banks are struggling with flighty deposits, interest-rate mismatches and pricey borrowing. Even […]

India’s once-troubled banks are generating huge profits

People looking for tips on how to run a bank do not often head to Mumbai, and for good reason. On May 2nd India’s Supreme Court ruled that the fraud-investigation office could prosecute auditors for their role in the collapse in 2018 of an infrastructure-finance firm backed by state banks. Last year four bosses at […]

Banks Try to Make Security Customer-Friendly. Not a Good Mix.

Account security has long been a paramount concern of banks. And the Internet era and online banking services have increased the attack surface. See the movie The Shawshank Redemption for an illustration of what it took to heist an account with out an inside co-conspirator, back in the days of paper-based documentation. Today banks need […]

Inflation falls ease pressure on central banks

This article is an on-site version of our Disrupted Times newsletter. Sign up here to get the newsletter sent straight to your inbox three times a week Today’s top stories Donald Trump will turn himself in to New York prosecutors next Tuesday after his history-making indictment in a hush money case. Here’s our explainer on […]

How much longer will America’s regional banks hold up?

What kind of story is unfolding in the banking system? At first glance it would appear to be a tragic drama. In the past fortnight, four banks have met their end: two crypto lenders, the dominant bank in Silicon Valley and most recently a global systemically important bank. There have been 11th-hour interventions to protect […]

America’s banks are missing hundreds of billions of dollars

It is easy to understand how money gets destroyed in a traditional bank run. Picture the men in top hats yelling at clerks in “Mary Poppins”. The crowds want their cash and bank tellers are trying to provide it. But when customers flee, staff cannot satisfy all comers before the institution topples. The remaining debts […]

Central banks announce dollar liquidity measures to ease banking crisis

The Federal Reserve and five other leading central banks have taken fresh measures to improve global access to dollar liquidity as financial markets reel from the turmoil hitting the banking sector. In a joint statement on Sunday, the central banks said that, from tomorrow, they would switch from weekly to daily auctions of dollars in […]

Goldman Sachs cuts GDP forecast because of stress on small banks

Photo illustration, the Silicon Valley Bank logo is visible on a smartphone, with the stock market index in the background on the personal computer on March 14, 2023, in Rome, Italy. Andrea Ronchini | Nurphoto | Getty Images Goldman Sachs on Wednesday lowered its 2023 economic growth forecast, citing a pullback in lending from small- […]

For markets Silicon Valley Bank’s demise signals a painful new phase

To quell inflation, goes the adage, central bankers must tighten monetary policy until something breaks. For much of the past year this cliché has been easy to dismiss. Starting in March 2022, America’s Federal Reserve has raised rates at the fastest clip since the 1980s. Even as markets plunged, the world’s financial system stayed wreckage-free. […]