Asian banks for the most part remained relatively unscathed during the Global Financial Crisis of 2008. However that situation appears to be changing. According to a recent report in The Wall Street Journal, “Despite relatively strong economic growth, risks for banks are growing in Asia. Among the risks are a big increase in lending in …
Asian banks are relatively in a better position than European and US banks. Having stayed strong during the credit crisis, Asian banks continue to maintain high Tier 1 Capital Ratios and follow their conservative business models. In addition, state regulators have played a key role in strengthening the banking systems by formulating sound policies and …
Last year has been brutal for investors in European bank stocks. Compared to the plunge of 25% for US bank stocks as measured by The KBW Bank Index, the STOXX Europe 600 Banks Index was down about 33% in Euros. Many individual European bank stocks have performed much worse with none of their exchange-traded ADRs …
Continue reading ‘European Banks To Face Further Pressure in 2012’ »
As 2011, dubbed as the ‘Year to Forget’, is coming to end soon some investors are wondering if bank stocks are worth getting into now. Since the credit crisis most bank stocks have been decimated and some of the banks have completely disappeared due to forced takeovers, mergers or failures. However despite all the calamity …
Continue reading ‘Volatility of U.S. Bank Stocks Still Remains Too High’ »
Tier 1 Core Capital is used by regulators to determine the strength of a bank. The higher the ratio the better the position of a bank. The following chart shows the Tier 1 Core Capital Ratio of select large-cap western banks: Click to enlarge Note: Data used are based on Q2 2011 reports. Source: How …
Continue reading ‘Tier 1 Core Capital Ratio of Select Developed Market Banks’ »