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By Jeff Harding. The esteemed Ambrose Evans-Pritchard of UK’s Telegraph makes the unstartling announcement that U.S. bank credit has been shrinking for the past three months at a rate (14%) that has not been witnessed since the 1930s. Professor Tim Congdon from International Monetary Research said US bank loans have fallen at an [...] By Jeff Harding Our banks are not in good health. By any measure they are still fragile because their capital ratios remain low. What does this mean? The Tangible Common Equity (TCE) Ratio is the equity of a bank minus its preferred shares, goodwill and intelligible assets as a percentage of tangible assets. [...] By Jeff Harding The Wall Street Journal reported on the fact banks are still contracting credit. They reported that the 15 largest banks’ loans shrank by 2.8% in the second quarter. They blamed it on tighter lending standards and lesser demand for loans. Here is David Rosenberg’s (Gluskin Sheff) take on the data: AN [...] |
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