Hints and tips:
...Those on the list below, courtesy of Bloomberg News, were the biggest depositors of SVB: No sign of Mom and Pop. At end-2021, four depositors accounted for 14 per cent of Signature Bank’s assets....
...There is also the new unknown of the growth of online banking, which has made it easier for depositors to transfer their money instantly as was the case in the US bank failures....
...But the full risks are unknown. The sector has grown quickly and away from scrutiny. A more relaxed approach to valuations and due diligence might hide significant exposures....
...Valuations do look attractive to us across most of the stack at this point, but there are clearly unknowns and stresses in the market that are hard to quantify....
...Turkey would need about $30bn to finance it when excluding funds coming from unknown sources, known as “errors and omissions”....
...The other unknown is how monetary policy is affecting the economy....
...The febrile financial mood of recent months has so far proven helpful to big banks, which command greater trust from depositors and equity investors....
...Those were classic depositor runs, driven by flighty depositors getting spooked and racing to withdraw their money before others, which could force sales of underwater securities and crystallise the losses...
...This would not have been a problem if depositors retained confidence in the bank so that it could hold the securities to maturity....
...Despite being still a relatively unknown politician in Europe, he emerged as the lead candidate for president of the eurogroup in 2013 in the midst of the euro crisis....
...The new prime minister is Hassan Diab, an engineering professor almost unknown except for a makeshift stint as education minister almost a decade ago....
...The current rules tacitly acknowledge this unknown, and it seems to have worked OK for most. Maturity transformation — taking money short and lending it long — is one of finance’s main functions....
...“The more retail depositors there are, the less sense there is in bailing it out,” said a senior state banker....
...(At least for as long as its core depositor base — unlike the bitcoin depositor base — demands the guarantee of par value.)...
...So far, central banks have only charged banks for a portion of their reserves, allowing them to shield retail depositors from the fee....
...Their exact number is unknown but is believed to range from 700 to 2,000. Often operating from offices in the centre of large cities, these institutions compete with Iran’s 30 commercial banks....
...Mr Meimarakis’ skills as a cabinet-builder are unknown. He has talked a good game about bringing in experts from outside parliament to join his government....
...“Asset quality is very much an unknown,” says Mr Roscow....
...The final unknown is just how much money Greece’s banking sector will need....
...At this level, depositors such as pension funds will try withdraw cash and vault it....
...Iranian banks and credit institutions pay between 22 to 27 per cent interest to depositors, far above the inflation rate....
...But it’s unknown how investors in gold-backed ETFs will react. The last time the Fed started a rate hiking cycle was in 2004, when ETFs tracking gold were only just being set up....
...Tsvetlin Yovchev, the interior minister, said text messages and emails from unknown sources were sent to some FIBank customers suggesting the bank was in trouble....
...Banks pass along the higher rates to their depositors, and likewise money market funds pass them along to their investors....
...It is the unknown unknowns (what we do not know that we do not know) that cause the most damage....
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