Reserves
JP Morgan borrowed $240bn in fed funds and repo markets in Q3
Average quarterly balance was 30% up year-on-year
Funding risk of global banks varies
Basel study shows European banks have seen net cash outflows increase just 7.7% in four years
Fed fund and repo borrowings top $1trn at big banks in Q2
JP Morgan had 16.8% of total outstanding borrowings of the largest banks at end-June
PNC drains Fed account for buying spree
Future cut to LCR could lead to further withdrawals
Goldman Sachs builds legal reserves
Bank raises estimate of potential losses to $2.5 billion
Reserve release fluffs UniCredit's Q1 income
Settlement of sanctions violation boosts profits, CET1 ratio
US branches of foreign banks shed $91 billion of reserves in 2018
Drop-off coincides with Fed’s ‘normalisation’ strategy
Fed reserves $749bn above banks’ ‘comfort levels’
Lenders could shed excess reserves by up to 61% without breaking a sweat
Generali accelerates pivot to ‘capital light’ products
Tilt to unit-linked products helps relieve capital burden
UK bank misconduct charges dwindle
Six of seven stress-tested banks report 50% fall in legal and regulatory reserves
Accounting change dents Aussie bank earnings
Four largest Australian lenders lose about $2bn in earnings on the switch to new accounting standard AASB 9
HQLA savings may hit $52bn for big three US regionals
US Bancorp could slash HQLAs by $24 billion if ratio is set at 70% for Category IIIs
BMO’s loan loss reserves climb
Canadian bank reserves increase C$26 million quarter to quarter
Commonwealth Bank hikes loan reserves on accounting switch
Provisions rise 38% on July implementation of AASB 9
RBS puts RMBS woes behind it, draining capital
DoJ settlement incurs 50bp CET1 ratio charge
Prudential grows long-term care reserves, draining profits
Annual actuarial updates take net $160 million away from adjusted operating income
Poor governance is top factor in insurer failures – Eiopa
Internal governance and control risks primary cause of 14% of failures
JP Morgan, Wells Fargo excess reserves dwindle faster than Fed average
Total banking sector excess reserves have dropped 5.8% since Fed "normalisation" began
The case for draining excess reserves
The financial system can operate efficiently with $500 billion or less in reserves after normalisation