The Canada banking regulator (OSFI) is increasing the pace of reporting required of Banks. Here follows notes on a few items of note related to increasing risk pre and post SVB. OSFI increases monitoring to daily Globe and Mail Canada’s regulator is taking extra precautions. OSFI has told banks that, starting as early as Tuesday and until further notice, they will be required to send the regulator liquidity reports each day through an existing monitoring tool that tracks banks’ financial positions, the two sources said. The added monitoring is not a sign of imminent concern, they said, but it is … Continue reading OSFI (Canada) increases pace of Bank Regulation following SVB collapse

OSFI to start daily monitoring of Canadian banks’ liquidity in wake of SVB failure. Globe and Mail. Bundesbank chief says rate-setters must be ‘more stubborn’ in inflation fight. FT Financial turmoil complicates central banks’ focus on inflation FT What to Know Ahead of the Fed’s Interest-Rate Decision Bloomberg All eyes in the financial and economic world will be laser-focused Wednesday on the Federal Reserve as Chair Jerome Powell tries to balance his fight against inflation against a sudden banking crisis. RBC tells employees to return to the office three or four days a week TikTok caught in US-China battle over … Continue reading What I am watching 2023-03-24

This is the consequence of the Fed having left monetary policy too loose for too long Gillian writes an excellent piece that adds colour to the root cause discussion on SVB. It captures a thought process set of risks not addressed by Dodd-Frank, OSFI or British regulation which all more broadly focus on discrete individual FI’s and less the systemic risks in the market that few want to touch. Already I sense the market participants are glossing over the crisis and suggesting it is contained. I disagree and am doing my own analysis to test that hypothesis. It is time … Continue reading SVB exposes a significant carry trade problem

UPDATE: 2023-03-15 @ 15:55 EST As predicted this morning there had to more to come following the string of denials from Management and investors. In a first for a global bank since 2008 here is latest from Reuters. Reuters: Swiss financial regulator FINMA and the nation’s central bank said on Wednesday that the Swiss National Bank would provide Credit Suisse (CSGN.S) liquidity “if necessary”, a first for a global bank since the financial crisis. Original post A string of denials from Credit Suisse owners, management and investors caught my attention.. The cost to insure against default for the bank has … Continue reading UPDATE – Credit Suisse being touted with unheard of default on horizon