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Increasingly banks are only lending to a different parts of the federal government anyway-—deploying their cash on treasuries and agency debt. They are being dr
by bradleyjg 3y ago
Increasingly banks are only lending to a different parts of the federal government anyway-—deploying their cash on treasuries and agency debt. They are being driven to this by the risk weighted capital adequacy requirements.
The whole thing resembles an ever more intricate Rube Goldberg machine.
- JumpCrisscross 3y ago> increasingly banks are only lending to a different parts of the federal government anyway-—deploying their cash on treasuries and agency debt This is incorrect. In 2022, the largest increases were in credit cards (+17.4%), commercial and industrial loans (+14.5%), consumer loans (+11.6%), commercial real estate loans (+11.3%) and real estate loans (+10.1%) [1]. Treasury and agency security holdings across American banks were majorly added between 2019 and 2021, and then spent down as balance sheets swapped. (They remain, of course, a commanding fraction of bank assets for obvious reasons.) [1] https://www.federalreserve.gov/releases/h8/current/ https://www.federalreserve.gov/releases/h8/current/
- bradleyjg 3y agoWhat‘s the decade by decade trend?