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Before the global financial crisis, borrowers could easily source bank debt at loan-to-value (LTV) ratios of up to 75%, including senior debt in the 60% to 65% LTV range. But [...]

Motivation: Banks are among the most important institutions in the financial sector and are moving toward solid international coordination. This motivates the examination of how credit risk is disclosed by these institutions in multiple countries. Premise: As international standards such as Basel and the International Financial Reporting Standards (IFRS) are continuously improved and adopted by countries around the world, we assume that the degree of credit risk disclosure of banks is comparable and at about the same level. Approach: We scrutinized the number of pages dedicated to credit risk in annual reports and built a disclosure score that captures the qualitative and quantitative aspects of the risk information present in those documents. The score was inspired by Scannella and Polizzi (2020), and further, Welch's t-test was used to compare disclosure practices both within and between countries. Results: The results indicate that there is no significant difference in the credit risk disclosure score of the three countries examined (Japan, South Africa, and Mozambique). However, within each country, we found that larger banks tend to disclose significantly more pages than smaller banks, particularly in Japan. Conclusion: Our results underscore the need for standardized reporting formats and improved tools for disclosure, especially electronic filing systems. Secondly, there is room for improving comparability in credit risk disclosure practices. Consistency: This paper contributes to the understanding of risk disclosure among banks from different countries, which can benefit audiences such as regulators and investors. Furthermore, our score contributes by reducing the subjectivity associated with the content analysis methodology. Keywords: bank, credit risk, disclosure index, Japan, Mozambique, South Africa JEL Classification Code: G21, INTRODUCTION Credit risk, which refers to the risk of borrowers defaulting on their debt obligations, directly impacts the financial stability of lenders. By disclosing credit risk information, banks enable investors, [...]

Russian banks are urging the country's central bank to boost yuan liquidity amid shortages. But Russia's central bank is advising lenders to limit yuan-denominated loans. The Russian central bank said [...]

TD Securities yesterday afternoon downgraded Bank of Montreal to Hold from Buy with a price target of C$114, down from C$130. The company's results remain overshadowed by the 'abrupt absolute [...]

Byline: Debashis Basu Last week, finance minister (FM) Nirmala Sitharaman asked public sector banks (PSBs) to make concerted efforts to mobilise deposits through special drives because deposits have been lagging [...]

TLDR: Elon Musk’s Twitter buyout is considered the worst leveraged buyout deal for banks since 2008 $13 billion in loans for the deal remain unsold on banks’ balance sheets after [...]

Asset manager DWS hires a JPMorgan exec to lead its real estate lending business. Its head of real estate seeks to build the firm into a 'top five provider of [...]

Byline: Moneylife Digital Team Gold loans outstanding of scheduled commercial banks (SCBs) jumped 25.66% or by Rs1.57 lakh crore to Rs7.73 lakh crore, while for non-banking finance companies (NBFCs), it [...]

Byline: Ashwani Maindola, New Delhi The Union Budget has announced a Credit Guarantee Scheme for MSMEs in the manufacturing sector for facilitating term loans to MSMEs for purchase of machinery [...]

Starling Bank, the digital-only lender, is stepping up its legal actions against businesses that defaulted on state-backed pandemic loans. The bank has filed winding up petitions against 24 companies since [...]

Byline: Moneylife Digital Team Reserve Bank of India (RBI) has imposed a penalty of Rs2.75 lakh on three cooperative banks and India Home Loan Ltd, a housing finance company (HFC), [...]

In This Issue / Personal finance Pocket money... banks apply credit crunch to customers ● “Although the mood music in the City suggests that interest rates are coming down sooner [...]

INVESTING COVER STORY / INVESTING YIELDS We found enticing yields in nine categories, ranging from 3% to 12%, depending on risk BY ANDREW TANZER GETTY IMAGES TO POUNCE ON IT [...]

Indicators for the 12 banks listed on the Tunis Stock Exchange show an increase in net loans outstanding to customers of these banks in the first three months of 2024, [...]

Alliance Global Partners analyst Gaurav Mehta lowered the firm's price target on Sachem Capital to $3.75 from $4 and keeps a Buy rating on the shares after the company reported [...]

A woman in Brazil was arrested after seemingly trying to secure a bank loan using her dead uncle's signature. The woman appeared to bring her uncle's body to the bank [...]

CENTURY CITY A new lender has emerged on the Los Angeles scene--one specifically targeting established life science companies. Symbiotic Capital, a non-bank lender co-founded by local biotech magnate Arie Belldegrun, [...]

What type of consumer lending may offer banks collateral that increases in value, high credit-score borrowers, geographic variance and attractive returns? Answer: Loans to finance purchases of collectible cars, a [...]

Byline: Aaron Elstein The Empire State Building's owner has secured new and potentially much larger loans, a sign that although banks are generally squeamish about lending to office landlords, they [...]

Officials in China are pushing banks to rush loans for property developers, Reuters reported. The real estate sector is in a downturn, and many lenders are strapped for cash. The [...]

US banks have given out $1 trillion of loans to non-regulated 'shadow banks.' Regulators said that these alternative lenders increase banks' exposure to higher risk debt. Several major banks including [...]

Some $2.1 trillion of commercial estate debt is estimated to come due by the end of 2025. Banks and other lenders could face big losses on those debts. Recent loan [...]

First Farmers and Merchants Corp., the holding company for First Farmers and Merchants Bank, reported that Jennifer J. McConnell has joined the bank as Chief Credit Officer. 'We are pleased [...]

Byline: Bar & Bench Lenders led by Canara Bank provided a rupee term loan facility and a performance bank guarantee facility to Jindal Paradip Port. Lenders led by Canara Bank, [...]

The Greek state divested equity stakes in three systemically important Greek banks in 2023. The privatisations have enhanced sector resilience, helped to restore market confidence and attracted depositors. Looking ahead, [...]