Nationwide bank credit rose to $17.31 trillion in the week ending June 28 on a non-seasonally adjusted basis; up from $17.29 trillion a week earlier. While credit contracted slightly on a seasonally adjusted basis, both measures remained higher when compared to the first week of June.

In contrast, commercial and industrial lending, which is indicative of the lending activities of small and medium businesses, edged lower from $2.78 trillion to $2.77 billion.

The uptick in credit is unexpected given the tight fiscal policy being implemented by the Federal Reserve. Since the start of the inflation crisis last year, U.S. interest rates have been increased by the central bank on a regular basis.

The post U.S. Bank Credit Expands Despite Drop in Lending appeared first on theprimarymarket.com.

Shares in Leumi were up 1.4% in Tel Aviv, reaching 28.81 shekels during the morning session following the announcement. The bank’s forecasted fall in profit is largely expected to be driven by the decline in the value of Valley National Bancorp; where Leumi holds a 14.2% stake.

With Valley’s stock falling 33% so far in 2023 to $7.60, Leumi’s investment in Valley is believed to have declined by 1 billion shekels ($275 million). Now, Valley is valued at $3.9 billion, with analysts cutting their target price for the bank to $10-$13 as a result.

Despite the bank’s fall in value, Leumi continues to reiterate its support for Valley, claiming that its long-term relationship with the bank will help to boost Leumi’s credit portfolio in the United States.

“Valley is a bank with a consistent history of stringent risk management,” Bank Leumi stated.

The post Bank Leumi Expects 50% Drop in Q1 Profits Following Decline of U.S. Arm appeared first on theprimarymarket.com.

There are several reasons why First Republic Bank is no longer looking for a buyer. The main one is that potential buyers are scared off by the massive hole in its balance sheet that amounts to $12 billion. The suitors would want “reassurance of a government backstop” for these losses that they have to write down, something that doesn’t seem likely at the moment.

First Republic Bank executives have now decided to continue business as usual while attempting to improve the bank’s health and make it a more desirable asset in the future. In case this happens, another sale attempt will likely follow. The option of remaining independent is also on the table.

After Silicon Valley Bank and Signature Bank collapsed in early March, many believed First Republic Bank could follow the same path. However, this scenario was avoided thanks to funding injection by the Federal Reserve and JPMorgan Chase & Co. This allowed the company to get access to $70 billion in unused liquidity that allowed it to continue its operation.

The post First Republic Bank Is No Longer Looking For a Buyer appeared first on theprimarymarket.com.

Nationwide bank credit rose to $17.31 trillion in the week ending June 28 on a non-seasonally adjusted basis; up from $17.29 trillion a week earlier. While credit contracted slightly on a seasonally adjusted basis, both measures remained higher when compared to the first week of June.

In contrast, commercial and industrial lending, which is indicative of the lending activities of small and medium businesses, edged lower from $2.78 trillion to $2.77 billion.

The uptick in credit is unexpected given the tight fiscal policy being implemented by the Federal Reserve. Since the start of the inflation crisis last year, U.S. interest rates have been increased by the central bank on a regular basis.

The post U.S. Bank Credit Expands Despite Drop in Lending appeared first on theprimarymarket.com.

Shares in Leumi were up 1.4% in Tel Aviv, reaching 28.81 shekels during the morning session following the announcement. The bank’s forecasted fall in profit is largely expected to be driven by the decline in the value of Valley National Bancorp; where Leumi holds a 14.2% stake.

With Valley’s stock falling 33% so far in 2023 to $7.60, Leumi’s investment in Valley is believed to have declined by 1 billion shekels ($275 million). Now, Valley is valued at $3.9 billion, with analysts cutting their target price for the bank to $10-$13 as a result.

Despite the bank’s fall in value, Leumi continues to reiterate its support for Valley, claiming that its long-term relationship with the bank will help to boost Leumi’s credit portfolio in the United States.

“Valley is a bank with a consistent history of stringent risk management,” Bank Leumi stated.

The post Bank Leumi Expects 50% Drop in Q1 Profits Following Decline of U.S. Arm appeared first on theprimarymarket.com.

There are several reasons why First Republic Bank is no longer looking for a buyer. The main one is that potential buyers are scared off by the massive hole in its balance sheet that amounts to $12 billion. The suitors would want “reassurance of a government backstop” for these losses that they have to write down, something that doesn’t seem likely at the moment.

First Republic Bank executives have now decided to continue business as usual while attempting to improve the bank’s health and make it a more desirable asset in the future. In case this happens, another sale attempt will likely follow. The option of remaining independent is also on the table.

After Silicon Valley Bank and Signature Bank collapsed in early March, many believed First Republic Bank could follow the same path. However, this scenario was avoided thanks to funding injection by the Federal Reserve and JPMorgan Chase & Co. This allowed the company to get access to $70 billion in unused liquidity that allowed it to continue its operation.

The post First Republic Bank Is No Longer Looking For a Buyer appeared first on theprimarymarket.com.