Hints and tips:
Related Special Reports
...SVB had been the go-to financial institution for start-ups and venture capitalists, providing accounts, loans and other services....
...employees of corporate customers....
...Clearly, there were risk-management issues for some customers, putting too much of their money in SVB or relying on it too heavily for funding....
...First Citizens’ “innovation portfolio” of loans, which it said was made up entirely of loans by SVB, totalled $4.3bn at the end of 2023, down from SVB’s loan book of $6.7bn a year earlier....
...The agency typically likes to sell to other regulated banks so the loans and customers of collapsed lenders remain under the eye of regulators....
...Japan’s Financial Services Agency reacted to the failures of SVB and other US banks in March with scrutiny of smaller regional lenders, particularly those that could be exposed to similar risks....
...The FCA later banned price discrimination against loyal motor and home insurance customers....
...The number of cases also hit a new record, increasing by 32 per cent, with average losses per customer of £2,314....
...The upshot is the AI technology does the work of 700 of its 3,000 customer service jobs. Some parts of the market have already woken up to the potential....
...But here they are, propping up Bank of America’s balance sheet along with Joe and Jill Public. Even after SVB and FRB, there’s little regulatory threat....
...But one lesson from the bank run that led to SVB’s collapse was that what appears to be a diversified client base can quickly be understood as a lot of dudes taking their cues from a few head honchos....
...Over the past two years, bank analysts have increasingly deployed the term “deposit beta” to describe the sensitivity of lenders to customer deposits....
...Its insurance customers carried lower costs of capital than banks, making them a good home for many loans, said Gray....
...More than half of adults do not have a bank account, according to regulator CNBV. “The penetration of financial services in Mexico is way lower than Brazil,” added the Colombian entrepreneur....
...That same year, the Hungarian central bank announced that it would provide cheap green loans to banks for the purpose of lending money to customers purchasing or constructing highly energy-efficient homes...
...Despite this, in recent days executives from the country’s four largest banks — JPMorgan Chase, Bank of America, Citigroup and Wells Fargo — said during earnings calls that consumers were resilient....
...These are calculated by applying a risk weighting to banks’ businesses, including loans they have made to their customers....
...An investigation by the FT found that the Austrian bank had posted 2,400 job advertisements in Russia since December, with some 1,500 for sales management and customer service roles....
...“This has translated into raising the bar for loans to small and midsize businesses who are highly dependent on these banks’ lending services in order to run and grow their businesses.”...
...But under the “terms of service” section of its website, BetterMed states that the company is not a lender and that it “provides no express or implied guarantee that you will be approved for a loan”....
...“Banks . . . have a lot of power they can’t yet wield,” said Matthew Boyes of Hometree Finance, a financier of gas boilers that plans to offer heat pump loans....
...When one starts to lose the confidence of its customers, this can spread like wildfire. Once SVB went down people were looking to see which dominoes would fall next, and they looked globally....
...Under Robinson, AmEx capitalised on one of America’s most memorable corporate tag lines — “Don’t leave home without it” — and created the platinum card....
...Here is JPMorgan chief executive Jamie Dimon: Consumer customers are fine. Unemployment is very low. Home prices are up. Stock prices are up....
...Emergency measures from the Federal Reserve, billions of dollars from the federal deposit insurance fund, and tens of billions of loans from the government-backed Federal Home Loan Banks quelled the crisis...
International Edition