North America

The US regional banking system has just sustained its third bank collapse this year. Following an initial sharp slump in reaction to the news, bank stocks have continued to fall as short sellers target perceived weakness. Can the sector stabilize as the impact of rate rises on many of these lenders’ business models becomes apparent?

The big transaction banks are becoming increasingly active in the B2B marketplace as they seek to cash in on corporate digital transformation.

US banks have seen $1.1 trillion in deposits flee the system over the past year. Much of this wound up in money-market funds that offer higher returns and the promise of safety and stability at a time of rising uncertainty. How dangerous is this for US lenders, and what can they do to convince flighty deposits to return to the banking system?

The collapse of Silicon Valley Bank has fuelled an abrupt end to venture-capital exuberance. There are vital implications for fintech and for the banking industry.

JPMorgan has cleaned up in a deal that sees the regulators waive their own cap on 10% deposit ownership.

JPMorgan’s AI model to interpret central bank messaging came out just as it emerged that Jerome Powell had been pranked into discussing policy with Russian provocateurs. Euromoney’s distinctly obvious heuristics model (D’Oh!) might be needed.

Relative winners after a year of interest rate hikes include Bank of America and Citigroup. Losers are led by regional US banks, while alternative asset managers argue that higher rates present a historic opportunity.

How on earth, in this environment, did the bank deliver one of its best-ever quarters in Asia?

The recent spate of deposit flight that spread panic through the banking systems of the US and Europe opens a chance for non-bank lenders to seize more of the core businesses that banks want to retain. Central bank emergency measures may have prevented the crisis from spreading, but a new phase of disintermediation has begun.

Disagreement over where US interest rates are going has split opinion on overall prospects for emerging market currencies.

Rethinking liquidity regulation would be better than a regulatory backlash that imposes an even greater liquidity burden on banks. History offers some lessons on how that might be done.

The last broker-dealer was always going to feel the pain of a continuing capital markets slowdown, but sales and trading has provided a useful fillip.

Rising interest rates have driven demand for more efficient liquidity structures.

Citi’s Wealth at Work, which delivers wealth services to white-collar professionals in sectors from law and asset management to private equity, is less than two years old. Its founder and global head Naz Vahid talks to Euromoney about the concept and where the division can go from here.

The failure of venture capital’s favourite bank is bad news for a sector reliant on new injections of cheap capital to sustain loss-making growth.

As well as higher capital requirements for regional US banks, the policy response to the Silicon Valley Bank collapse will likely include increasing the Deposit Insurance Fund, which bigger banks will have to pay for.

Recent events call into question most of the core assumptions behind the rules designed to keep banks safe through a liquidity squeeze.

Bankers have been at pains to stress how different the world is today from the dark days of 2008: higher capital; more liquidity; lower credit risk and all that. But while individual banks may be safer than they were, collectively they arguably now face a worse existential crisis. Societies face awkward questions about how they value the utility of the banking sector – and how they should pay for it.

Big foreign-exchange banks are focussing on enhanced functionality to promote greater use of single-dealer platforms.

Short-term government bonds have re-emerged as a viable option for corporate treasurers seeking returns on their cash, but recent events in the US banking sector highlight the risks of long-dated exposures.

Solar thermal technology could offer cheap carbon-free heat for manufacturers. But tech developers are stuck in a financing gap between venture capital and project finance that will be harder to fill after recent bank failures.

Interest rate risk management has been complicated by the fall in yields after the US bailout of SVB’s depositors. Clients may feel that hedging chiefly benefits Wall Street dealers rather than themselves.

It is not clear how the SVB collapse will change banking; but it is clear that the lack of supervision of smaller banks allowed systemic risk to spread worryingly fast.

HSBC runs towards the storm as others are fleeing it.

The collapsing share price of Silicon Valley Bank, triggered by the realization of a loss on a portfolio sale, puts pressure on other US banks that have built up similar books of investments.

Patents are a high-profile demonstration of a bank’s commitment to innovation, but they are not the only option for those looking to encourage new ways of thinking.

The notion that different businesses can produce healthy results by being under the same roof underpins Goldman Sachs’ diversification strategy. After failing to make that work at the first time of asking, its second attempt looks more derivative – but is perhaps likelier to succeed.

Tokenization is spreading fast. Regulated finance is finally embracing blockchain technology just as most cryptocurrencies stand revealed as overleveraged Ponzi schemes. The institutional herd is moving, but can the blockchains they are shifting onto bear the load?

Firms betting on interest-rate declines will be hoping that inflation does not force central banks to raise the cost of borrowing again.

Big transaction banks are responding to corporate customer demand for sustainability linked supplier-finance programmes by extending the geographical availability and range of the products they offer.