Showing posts with label bank reserves. Show all posts
Showing posts with label bank reserves. Show all posts
Sunday, September 7, 2014

Markets expect negative overnight rates in the Eurozone through mid 2016 as reserves become a "hot potato"

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Last week's unexpected decision by the ECB to set the rate on bank excess reserves to -0.2% is sending liquidity holders scrambling. T...
Friday, May 23, 2014

Fed's experimental reverse repo program ramps up

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Growth in US reserve balances (funds that banks hold at the Federal Reserve) has stalled recently. Part of the reason for the slower growt...
Sunday, February 16, 2014

US commercial banks' changing asset mix

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Here are some updates to the recent discussion on loan growth weakness relative to rising deposit balances at US commercial banks ( see po...
Friday, January 17, 2014

How bank reserves make the gap between deposits and loans disappear

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Earlier this week, CNN Money ran a story on JPMorgan's quarterly results. Instead of focusing on the earnings, the author's (Steph...
Saturday, August 3, 2013

QE3: the act of doing the same thing and expecting different results

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As we approach the first anniversary of the Fed's monetary expansion effort (QE3), it's worth comparing the success of the current...
Monday, July 22, 2013

QE ineffectiveness is playing out on banks' balance sheets

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Cash holdings are an increasingly large component of US commercial banks' balance sheets. This demonstrates the fact that thus far the...
Saturday, July 13, 2013

The Fed's latest dilemma

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The Fed continues to be divided over the next steps for its unprecedented monetary expansion program. Varying interpretations and conflict...
Tuesday, February 26, 2013

Draining excess reserves and the exit strategy

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Questions continue to surround the Fed’s eventual exit from years of quantitative easing. The ultimate fate of what is to become of the 3....
Saturday, January 19, 2013

Fed's balance sheet grows above $3 trillion, finally impacting the monetary base

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Total assets of Fed's balance sheet broke through $3 trillion last week, hitting a new high, as securities purchases are stepped up (i...
Thursday, December 6, 2012

Fed lowers mortgage rates without "printing money"

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The Fed remains in a holding pattern. Just as comparison, take a look at the pace of MBS purchases during QE1 in 2009 versus the current p...

Regional banks release loss reserves to boost earnings

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US regional banks have over-reserved for loan losses during 2009-2010 period, expecting a wave of defaults. Default rates however have bee...
Friday, November 9, 2012

Gold lagging previous QE cycles but DB remains bullish

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Deutsche Bank maintains its bullish stance on gold, in spite of missing their aggressive projection a few weeks ago ( see discussion ). Go...
Saturday, September 29, 2012

US repo rates spike

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The US repo rates have risen to a 3-year high this week. The chart below shows the so-called General Collateral (GC) treasury repo rate. G...
Monday, July 23, 2012

Outright asset purchases by the Fed will increase US banking system leverage ratios and potentially limit lending

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There seems to be quite a bit of confusion about the impact of US banks' deposits at the Fed on the overall bank credit. People are as...
Saturday, March 3, 2012

EONIA rate averaging due to the 3Y LTRO’s

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Guest post by Kostas Kalevras  (Twitter: @kkalev) One of the reasons that an averaging provision exists for banks required reserves du...
Friday, February 3, 2012

China's 2012 monetary policy: gradual easing

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Traditionally after a regime change, Chinese authorities don't want to implement anything drastic. China's new leadership will the...
Monday, January 23, 2012

Tired of hearing about the ECB Deposit Facility? Here is some good news.

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A chart from Barclays Capital just may limit media coverage of the ECB Deposit Facility. The badly needed chart (below) shows Barcap'...
Tuesday, January 17, 2012

The Deposit Facility is an indicator of net borrowings from the ECB

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There have been a great deal of focus recently on the ECB Deposit Facility as it reached another record today. London Evening Standard ...