Banking News & Insights

Unrealized losses at Banks in the US

Oct 18, 2024 | Banking Knowledge Base

In comparing unrealized losses of U.S. banks from 2024 to the 2008 financial crisis, we observe evolving patterns and implications for financial stability. The stringent regulatory environment of 2024 contrasts with past inadequacies, yet significant unrealized losses—totaling $517 billion—remain a challenge for banks, influencing risk management and stability. Insightful analysis of major banks, such as Bank of America, reveals varying impacts based on asset compositions and strategies. The importance of transparency, vigilance, and regulatory oversight, emphasized by the FDIC, is key to navigating these challenges and ensuring ongoing resilience.

What is a good Tier 1 capital ratio?

Oct 13, 2024 | Banking Knowledge Base

This blog post provides an in-depth exploration of the Tier 1 Capital Ratio, a vital indicator of a bank’s financial strength, calculated as the ratio of Tier 1 Capital to risk-weighted assets. It delves into the distinctions between Tier 1 and Tier 2 capital, examining their roles in financial stability and regulatory compliance. The post also explores the relationship between CET1 and Tier 1 ratios, underscoring the importance of a high Tier 1 ratio for robust financial health. Additionally, it breaks down core components of Tier 1 capital and provides practical examples to enhance understanding of capital adequacy in banking.

Major Banks in US by Asset Size

Oct 9, 2024 | Banking Knowledge Base

The blog post provides a comprehensive overview of major banks in the USA, focusing on their asset sizes, strategic roles, and market influence. It highlights the importance of asset size as an indicator of a bank’s ability to manage risks and foster economic growth while examining the top players, such as JPMorgan Chase, Bank of America, and Wells Fargo, for their leadership and innovation in the industry. The analysis extends to the top 100 banks, shedding light on their diverse strategies and significant contributions to the financial ecosystem. For a deeper dive into the financial metrics and call reports of these institutions, resources like Visbanking’s data platforms are recommended.