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Discusses the banking industry and deregulation. Data on how banks are taking more credit risks in the lending market; Topics of securitization, guarantees and derivatives, bank reserves, and syndicated loans.

The article discusses efforts by U.S. banks to repay funds they received from the U.S. Troubled Asset Relief Program. The banking firm Bank of America (BofA) has repaid preferred stock purchased by the government and sold stock to increase capital. The U.S. government has announced it will sell its shares in the banking firm Citibank. Proposed U.S. legislation for banking regulation and increases in bad debt reserves and core capital for banks are noted.

The article discusses the property market in Spain. Banks in Spain have begun purchasing properties before the loans associated with them are delinquent. The Bank of Spain sent out guidance which modified provisioning rules on risky mortgages to be easier in July 2009. The modifications include banks no longer having to make provision for the full value of risky loans.

Standard&Poor's, a rating agency, this week gave the 11 German Landesbanks--public-sector entities that are local development banks, house banks for state governments and clearers for local savings banks--a short reprieve. Under political pressure, S&P has postponed until July its plans to publish ratings that reflect the Landesbanks' creditworthiness without state guarantees, which they are due to lose progressively after July 2005. The biggest concern, for both credit analysts and traders, is that Landesbanks will have trouble refinancing themselves after 2005. Under proposed new international rules, due to come in at the end of 2006, the amount of capital that banks will have to set aside to cover loans to other banks will depend on the borrowers' credit ratings. A BBB rating would virtually shut a bank out of the interbank market. Some Landesbanks have restructured themselves in order to prepare for 2005, notably Landesbank Baden-Württemberg and HSH Nordbank.

Argues that efforts by Japanese banks to raise more equity in 1996 are ill-advised, because too much capital is tied up in Japan's banking system. Details on settlement of several banks' bad debts; Issue new shares to strengthen their capital ratios; Gains from bond trading and swaps in the 1995-96 financial year; Creation of reserves against bad loans; Expansion of bank lending in Asia.

Compares the California-based banks Bank of America (BA) and Wells Fargo. Steps taken by BA to improve its balance sheet; Wells Fargo's success in managing costs and avoiding bad loans; Benefits of a credit upgrade on the bank's debt; Diversification of lending risk by spreading across industries; Loan-loss reserve; Efficiency ratio measured by taking overhead costs as a percentage of revenue.