Tag: Banking

U.S. Regional Banks Q4 Results: Margin Gains and Deposit Trends

February 2, 2026

Fourth-quarter results show a clear inflection for U.S. regional banks as rate cuts began to flow through balance sheets. Roughly 90% of institutions in the $100B–$1T asset range reported both sequential and year-over-year net interest margin expansion. Across the group, quarterly margin gains ranged from mid-single-digit to low-double-digit basis points, with year-over-year improvements reaching nearly … More U.S. Regional Banks Q4 Results: Margin Gains and Deposit Trends

Yield vs. Speed: The New Dynamics of Stablecoins

January 21, 2026

Two developments this week add an important layer to the stablecoin and deposit conversation — and they’re best understood together. First, market infrastructure is moving toward always-on settlement.The New York Stock Exchange announced plans to launch a 24/7 trading platform for blockchain-based securities, with near-instant settlement on digital rails. That’s a meaningful shift from periodic … More Yield vs. Speed: The New Dynamics of Stablecoins

Impact of Credit Card Interest Rate Caps on Borrowers

January 20, 2026

The proposed 10% cap on credit card interest rates could significantly impact consumer credit markets, particularly for high-risk borrowers. Analysts warn it may lead to increased fees and tighter lending standards rather than lower costs. The ongoing debate emphasizes how regulatory changes can create unintended consequences, affecting access and affordability in credit. … More Impact of Credit Card Interest Rate Caps on Borrowers

U.S. Bank Interest Margins: Insights for 2026 Expansion

January 16, 2026

U.S. bank net interest margins are entering 2026 with notable momentum. After expanding for seven consecutive quarters, the setup remains constructive as rate cuts work their way through funding costs and loan demand continues to recover. Lower deposit costs have begun to flow through balance sheets, while loan production has rebounded and asset yields have … More U.S. Bank Interest Margins: Insights for 2026 Expansion

How Stablecoins Transform Payment Infrastructure

January 14, 2026

The discussion on stablecoins has evolved, highlighting their role not as deposit competitors but as essential components of market infrastructure. Moody’s 2026 outlook forecasts significant increases in stablecoin transaction volume driven by institutional use. This suggests stablecoins enhance liquidity dynamics rather than displacing traditional deposits, leading to a hybrid financial landscape. … More How Stablecoins Transform Payment Infrastructure

Stablecoins and Deposit Substitution: Key Insights for Financial Stability

January 14, 2026

The dialogue on stablecoins and deposit substitution is evolving, highlighting their modest impact on U.S. bank deposits. Currently at about 1.5% of deposits, stablecoins influence the banking landscape through direct substitution, recycling, and restructuring. While not an immediate threat, their growth could affect deposit stability and liquidity, prompting shifts in funding dynamics. … More Stablecoins and Deposit Substitution: Key Insights for Financial Stability

Year-End Funding Insights: Market Plumbing Matters

January 14, 2026

In Q3 2025, domestic deposits rose for the fifth consecutive quarter, driven by uninsured balances. Money market funds reached $7.73 trillion, indicating ongoing shifts in funding preferences. Meanwhile, the Federal Reserve is exploring stablecoins’ potential, highlighting a trend that integrates liquidity operations and digital finance strategies into future discussions. … More Year-End Funding Insights: Market Plumbing Matters

SRF & Repo Markets: What Late-2025 Taught Us About Liquidity Backstops

January 14, 2026

The Federal Reserve’s Standing Repo Facility (SRF) has evolved to operate without an aggregate cap, allowing for unlimited liquidity based on eligibility and collateral. Usage increased significantly in late-2025, primarily under stress conditions, yet the SRF remains a backstop for funding, emphasizing the importance of collateral management in liquidity strategies. … More SRF & Repo Markets: What Late-2025 Taught Us About Liquidity Backstops

Liquidity, Market Functioning, and Policy Signals — A Notable Week for Funding Markets

January 14, 2026

This week, the Federal Reserve announced $40 billion in Treasury bill purchases to enhance liquidity and relieve pressure in short-term funding markets, while framing it as a technical measure. Concurrently, the Fed cut its policy rate by 25 bps to 3.5–3.75%, emphasizing the importance of market functioning as year-end approaches. … More Liquidity, Market Functioning, and Policy Signals — A Notable Week for Funding Markets

The Consumer Credit Picture Is Getting Harder to See

January 14, 2026

The health of U.S. consumers is increasingly complex due to the rise of private credit, which is set to grow to nearly $140 billion in lending. This shift complicates traditional assessments, as banks focus on higher-credit borrowers, causing fragmentation and uncertainty in consumer spending patterns and credit availability. … More The Consumer Credit Picture Is Getting Harder to See