ˈdälfən™🐬 💥 🌊

A big deal 👀

Holding less capital in reserve amid loosened #lending rules will free up funds so #banks can lend more. Mortgages could become more competitive.

➡️ But lower capital requirements & loosened lending rules also means banks would have less to fall back on in a financial crisis, a risk for which is already high given geopolitical uncertainties and the private credit increase.

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#finance #banking #USA
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https://www.thestreet.com/personal-finance/wall-street-banks-just-got-a-rule-change-worth-billions

3:20amWeb
Show threadˈdälfən™🐬 💥 🌊1h ago

Banks' revenues, already very high for large banks, will increase more.

And though more revenue might benefit shareholders of larger bank stock as banks increase dividends, the banks will likely buy back their own stock and further increase their revenue.

A financial crisis will hit smaller banks harder than larger banks, which are better positioned with more financial cushion to mitigate lending risk.

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#finance #banking #USA #lending #risk #MyThoughts