Day: April 8, 2024

Becker Friedman Institute for Economics Working Paper – Book Value Risk Management of Banks: Limited Hedging, HTM Accounting, and Rising Interest Rates

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Author(s):Joao Granja, Erica Xuewei Jiang, Gregor Matvos, Tomasz Piskorski, Amit Seru Date:April 2024 Abstract: In the face of rising interest rates in 2022, banks mitigated interest rate exposure of the accounting value of their assets but left the vast majority of their long-duration assets exposed to interest rate risk. Data from call reports and SEC[…]

April 2024: EU banks are robust, but signs of credit quality deterioration are becoming apparent, the EBA’s Risk Dashboard shows

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EBA Press Release The European Banking Authority (EBA) published its Q4 2023 quarterly Risk Dashboard (RDB), which discloses aggregated statistical information for the largest EU/EEA institutions. EU/EEA’s banks capitalisation stands at record levels, liquidity has improved, while return on equity (RoE) stood at 10.3%. Yet, early signs of credit quality deterioration have become more apparent.[…]