Latest news with #BaselIII
Wall Street Journal
a day ago
- Business
- Wall Street Journal
At the Fed's Banking Conference, Sam Altman, Capital Rules and Avoiding the Powell Drama
The Federal Reserve wants to do things differently this time around. At least when it comes to banking regulation. After a package of strict requirements, known as Basel III endgame, fizzled last year, the Fed on Tuesday convened some of the nation's top bankers to discuss a new way forward.
Yahoo
a day ago
- Business
- Yahoo
Banks Ready Fresh Push Against Tighter US Capital Rules
(Bloomberg) -- Wall Street lenders and their lobbyists are descending on the Federal Reserve's first-of-its kind banking conference Tuesday with a broad ask of the new vice chair for supervision: Steer clear of stricter capital requirements. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Senior officials from JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are expected to use the event to detail a host of rule changes they'd like to see from regulators. Hot-button issues include the landmark risk-based plan known as Basel III endgame, the stress-testing framework and the capital surcharge for big banks. The conference is the brainchild of the Fed's new top bank cop, Michelle Bowman, who was confirmed last month after being lauded by banks for her drive to curtail rules and tailor supervision. It will effectively kick off her promise to reverse what she sees as a flawed approach to capital rules. Regulators have already been looking to dial back some requirements, unveiling a proposal in June to ease a key rule known as the enhanced supplementary leverage ratio. The Fed is also in the process of overhauling its stress tests, which gauge how large banks would fare during a hypothetical recession. Bowman is expected to help craft a new proposal tied to the so-called Basel III endgame. She was a sharp critic of the plan as originally drafted, which would have increased the biggest banks' capital requirements by 19% to buffer against losses and a financial crisis. The Fed later walked back that proposal. Treasury Secretary Scott Bessent on Monday pointed to that Biden-era bank capital proposal, which would have used two different methodologies when calculating risk-weighted assets. He said that instead of requiring banks to use whichever methodology resulted in a higher level of those assets, one possible option would be to give each bank that is not subject to the modernized requirements the choice to opt-in. 'This would result in a meaningful reduction in capital for those banks,' Bessent said in prepared remarks. Questions remain about whether final rule outcomes will resemble more of a capital-neutral standard, which some say would ease US requirements and put them more in line with international regulations, or go beyond that to significantly reduce the capital threshold for the largest banks. Fed Chair Jerome Powell underscored Tuesday the need for the banking system's capital framework to work together effectively, and for banks to be well-capitalized and to manage their risks well. He added that competition is also crucial for the industry. 'We need large banks to be free to compete with one another, with nonbank financial firms, and with banks in other jurisdictions to provide capital and support economic growth,' Powell said in prepared remarks. Supporters of tougher requirements, including Biden-era regulators, say the benefits of stricter capital requirements would outweigh their costs, by ensuring banks' solvency even in the worst foreseeable circumstances. Industry groups have frequently criticized the rules though, saying they raise the costs of lending and put US banks on weaker footing against international rivals. Noting the need for a more transparent approach to reforms, Bowman — who President Donald Trump nominated — has billed the forum as a way to spark 'expert discussions on whether capital requirements are operating as intended.' It includes panels with bank officials, attorneys and academics in addition to a conversation with OpenAI chief Sam Altman. Ian Katz, a bank analyst and managing director at Capital Alpha Partners in Washington, touts the event as crucial in helping the Fed think through some specific details, including how all the measures work together. 'I think we end up with rules closer to capital neutral,' said Katz, adding that the voices in the room play a key role in shaping overall outcomes. Andrew Olmem, the Washington—based managing partner at law firm Mayer Brown, said the conference shows how Bowman will make an effort to build consensus with industry, other financial regulators and the public about the future of capital standards before new rules are adopted, especially given the complexity and interconnectedness of such reform. But some critics dismiss the event as merely window dressing as the administration pursues the deregulation agenda Trump campaigned on last year. Graham Steele, a Fed alumnus who served as a Biden-era Treasury official, described the conference as a Fed listening session with mostly bankers and other detractors of regulation that will result in weaker rules for Wall Street. 'They'll try to couch deregulation in neutral-sounding language about 'tailoring' or 'efficiency,' but those are just buzzwords for lower capital and leverage requirements, less stringent stress testing, and weaker supervision and enforcement,' Steele said. (Updates with comments from Bessent, Powell beginning in sixth paragraph.) Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Wall Street Readies Fresh Push Against Tighter US Capital Rules
(Bloomberg) -- Wall Street lenders and their lobbyists are descending on the Federal Reserve's first-of-its kind banking conference Tuesday with a broad ask of the new vice chair for supervision: steer clear of stricter capital requirements. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Senior officials from JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are expected to use the event to detail a host of rule changes they'd like to see from regulators. Hot-button issues include the landmark risk-based plan known as Basel III endgame, the stress-testing framework and the capital surcharge for big banks. The conference is the brainchild of the Fed's new top bank cop, Michelle Bowman, who was confirmed last month after being lauded by banks for her drive to curtail rules and tailor supervision. It will effectively kick off her promise to reverse what she sees as a flawed approach to capital rules. Regulators have already been looking to dial back some requirements, unveiling a proposal in June to ease a key rule known as the enhanced supplementary leverage ratio. The Fed is also in the process of overhauling its stress tests, which gauge how large banks would fare during a hypothetical recession. Bowman is expected to help craft a new proposal tied to the so-called Basel III endgame. She was a sharp critic of the plan as originally drafted, which would have increased the biggest banks' capital requirements by 19% to buffer against losses and a financial crisis. The Fed later walked back that proposal. Questions remain about whether final rule outcomes will resemble more of a capital-neutral standard, which some say would ease US requirements and put them more in line with international regulations, or go beyond that to significantly reduce the capital threshold for the largest banks. Fed Chair Jerome Powell has said that the current level of capital in the banking system for large lenders remains 'about right.' Supporters of tougher requirements, including Biden-era regulators, say the benefits of stricter capital requirements would outweigh their costs, by ensuring banks' solvency even in the worst foreseeable circumstances. Industry groups have frequently criticized the rules though, saying they raise the costs of lending and put US banks on weaker footing against international rivals. Noting the need for a more transparent approach to reforms, Bowman — who President Donald Trump nominated — has billed the forum as a way to spark 'expert discussions on whether capital requirements are operating as intended.' It includes panels with bank officials, attorneys and academics in addition to a conversation with OpenAI chief Sam Altman. Ian Katz, a bank analyst and managing director at Capital Alpha Partners in Washington, touts the event as crucial in helping the Fed think through some specific details, including how all the measures work together. 'I think we end up with rules closer to capital neutral,' said Katz, adding that the voices in the room play a key role in shaping overall outcomes. Andrew Olmem, the Washington—based managing partner at law firm Mayer Brown, said the conference shows how Bowman will make an effort to build consensus with industry, other financial regulators and the public about the future of capital standards before new rules are adopted, especially given the complexity and interconnectedness of such reform. But some critics dismiss the event as merely window dressing as the administration pursues the deregulation agenda Trump campaigned on last year. Graham Steele, a Fed alumnus who served as a Biden-era Treasury official, described the conference as a Fed listening session with mostly bankers and other detractors of regulation that will result in weaker rules for Wall Street. 'They'll try to couch deregulation in neutral-sounding language about 'tailoring' or 'efficiency,' but those are just buzzwords for lower capital and leverage requirements, less stringent stress testing, and weaker supervision and enforcement,' Steele said. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P.
Business Standard
2 days ago
- Business
- Business Standard
Dhanlaxmi Bank gains on reporting turnaround PAT of Rs 12 crore in Q1
Dhanlaxmi Bank advanced 3.49% to Rs 30.25 after the bank reported a standalone net profit of Rs 12.18 crore in Q1 FY26 as against a net loss of Rs 8 crore posted in Q1 FY25. Total income jumped 20.45% year on year to Rs 407.06 crore in the quarter ended 30 June 2025. The bank reported a profit despite higher provisions and contingencies of Rs 21 crore, compared with Rs 4.7 crore in the year-ago period, as per the exchange filing. On the segmental front, revenue from treasury stood at Rs 76.38 crore (up 27.28% YoY), revenue from retail banking stood at Rs 218.58 crore (up 17.04% YoY), revenue from corporate and wholesale banking stood at Rs 109.28 crore (up 22.29% YoY), and revenue from other banking operations stood at Rs 2.82 crore (up 55.8% YoY) during the quarter. On the asset quality front, the ratio of gross NPAs to gross advances stood at 3.22% as of 30 June 2025, as against 2.98% as of 31 March 2025 and 4.04% as of 30 June 2024. The ratio of net NPAs stood at 1.13% as of 30 June 2025, as against 0.99% as of 31 March 2025 and 1.26% as of 30 June 2024. The bank's gross non-performing assets (NPAs) stood at Rs 401.95 crore as of 30 June 2025, as against Rs 364.11 crore as of 31 March 2025 and Rs 430.16 crore as of 30 June 2024. Meanwhile, the net non-performing assets (NPAs) stood at Rs 138.62 crore as of 30 June 2025, compared with Rs 117.94 crore as of 31 March 2025 and Rs 130.61 crore as of 30 June 2024. As of 30 June 2025, the provision coverage ratio (PCR), including technical write-offs, is 87.31%. The capital adequacy ratio under Basel III stood at 18.26% in Q1 FY26, compared with 16.12% in Q4 FY25 and 13.37% in Q1 FY25. Dhanlaxmi Bank is in the business of providing banking services.
Business Standard
2 days ago
- Business
- Business Standard
Union Bank of India slides after Q1 PAT declines 17% QoQ to Rs 4,116 cr
Union Bank of India slipped 1.75% to Rs 143.45 after the bank's net profit fell 17.44% to Rs 4,115.53 crore on a 4.49% decline in total income to Rs 31,781.34 crore in Q1 FY26 over Q4 FY25. On a year-on-year (YoY) basis, net profit jumped 11.87%, while total income rose 2.94% in Q1 FY26. Net interest income (NII) slipped 3.18% to Rs 9,113 crore in the June 2025 quarter, compared to Rs 9,412 crore in the June 2024 quarter. For Q1 FY26, the net interest margin (NIM) was 2.76%, down from 3.05% in the corresponding period last year. Profit before tax (PBT) grew 4.96% YoY to Rs 5,244.15 crore in the quarter ended 30 June 2025. The bank's operating profit before provisions and contingencies fell 11.26% to Rs 6,908.66 crore in the June 2025 quarter, compared to Rs 7,785.31 crore in the same quarter the previous year. On the asset quality front, gross non-performing assets (GNPA) stood at Rs 34,311.31 crore as of 30 June 2025, down 17.16% from Rs 41,422.94 crore as of 30 June 2024. The gross NPA ratio stood at 3.52% as of 30 June 2025, compared to 4.54% as of 30 June 2024. The net NPA ratio stood at 0.62% as of 30 June 2025, down from 0.90% as of 30 June 2024. The banks capital adequacy ratio as of 30 June 2025, as per Reserve Bank of India (RBI) guidelines under Basel III norms, was 18.84%, with a Tier-1 capital adequacy of 15.86%. Total business of the bank increased by 5.01% YoY, with gross advances rising 6.83% YoY and total deposits growing 3.63% YoY. The bank had total business of Rs 22,14,422 crore as of 30 June 2025. Global deposits have increased by 3.63% YoY. The bank now has a total deposit base of Rs 12,39,933 crore as of 30 June 2025. The RAM segment of the bank increased by 10.34% YoY, with in which 25.63% growth in retail and 17.65% growth in MSME advances were achieved on a YoY basis. RAM advances as a percentage of domestic advances stood at 58.11%. The CRAR improved from 17.02% as of 30 June 2024 to 18.30% as of 30 June 2025. The CET-1 ratio rose from 13.81% to 15.30% over the same period. The banks return on assets (ROA) and return on equity (ROE) stood at 1.11% and 15.15%, respectively, during Q1 FY26. Union Bank of India is one of the leading public sector banks in the country. The Government of India holds 74.76% of the bank's total paid-up capital. The bank has 8,649 branches, including foreign branches, over 8,900 ATMs, more than 73,500 employees, and over 23,000 BC points.
