📈💼 Interesting things in the banking sector!💡
Washington is caving in to pressure from big banks and rethinking capital buffer rules. Federal Reserve chairman Jerome Powell and Chairman FDIC's Martin Gruenberg expect major changes that could affect the banking sector and investors.
The new proposal would lead to 16% increase in capital levels and 20%
The proposal is under discussion in the wake of the collapse of several mid-sized banks last year, such as the former Silicon Valley Bank.
While some argue that the changes could have a negative impact on the economy and limit access to mortgages, others see this situation as a possible tipping point in bank regulation since 2008.
It's no surprise to me that banks are actively seeking to repeal these rules. JPMorgan Chase is already considering legal action if the situation does not resolve as they intend.
Most US banks started the new year with growth around 5-8 %. I find Citigroup$C-0.2% or Bank of America $BAC+0.1% a rather interesting candidate . However, I must not forget the European banks, which have pleasantly surprised me with their performance. For example, the Polish bank Pekao $PEO.WA-0.8% has appreciated since the beginning of the year by more than 17 % and now management has proposed a record dividend of PLN 19 (CZK 112), which represents 11% yield. Also interesting are Czech Moneta $MONET.PR+0.8% or Komerční banka $KOMB.PR+0.3%.
What is your favorite representative from the banking sector?💰🏦
My favorites and in my portfolio are $BAC+0.1% and $JPM-0.3%. Otherwise, since I don't understand the banking sector that much (which is why I represent these two banks, where I think there's nothing to go wrong), I don't think I fully understand the change in the proposal, could you explain it for a moron? 😁 ...like is this supposed to be a change for the banks in the sense of how much capital they have to mandatorily hold just in case the economy struggles and in case more customers want to withdraw their accounts at the same time, so that they have something to draw on? ...
In the case of dividend taxes, the tax regime (treaty) with the country is important. How much it is in the country of origin is usually (in case of a standard international treaty) not so important, you will pay Czech 15% in the end.