Sustained high global credit growth is stretching an increasing number of developed country banking systems, including Canada’s, and remains a concern, says Fitch Ratings in a new report.“Median real global credit growth was sustained at over 11% last year — its highest since the eve of the Asian crisis in 1997” says Richard Fox, senior […]
Fitch Ratings says that the announcements by banking giants, Barclays PLC and ABN Amro Holding NV, that they have entered into exclusive preliminary discussions regarding a potential combination of the two organizations does not have an immediate impact on either bank’s ratings.The announcements were scant in detail and it is possible that no deal will […]
New ratings will more closely reflect financial strength
New service pioneers cross border client credit references
No additional lift from external support
Moody’s Investors Service announced that it is considering refinements to its use of “joint default analysis” as part of its bank rating methodology. “Having consulted with market participants, Moody’s is assessing ways of applying more qualitative judgment to modify formulaic external support assumptions and their effect on bank ratings under JDA,” it explained. Moody’s said […]
Ratings agency has not tried to quantify probability of support
Big six, Desjardins “too big to fail”
More than one-third of the stock transactions originating in Canada now are executed by computers programmed to maximize trading efficiency, a study has found.The report from Forefactor Inc., an independent research and consulting firm specializing in capital markets, also suggests Canadian banks may have lost first-mover advantage in algorithmic trading.The study “indicates electronic trading is […]
Many bank deposit upgrades expected