Posted in contractions

Bank credit growth slows again in July, but consumer credit is officially in contraction

Consumer debt is down sharply because consumers have been borrowing less and have been paying down lots of debt. Since March, consumers have been borrowing between $20 and $15 billion CAD each month, but they’ve been paying down between $20 and $25 billion CAD each month at the same time. In July, we see that consumer credit issuance is down over 11% from the same time last year, but credit destroyed (or paid down) is down only 8%.

We’re seeing a similar thing happen in the business credit market. Businesses are borrowing less and have substantially increased their debt repayments. In July, credit issuance was down over 5% from the same time last year, but credit destroyed up is over 20%! If this trend continues, the bank business credit market will be in contraction before the of the year. This will have profound implications for the labor market.

Finally, all

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Posted in home improvement loans

Bank of England seeks to increase competition in home loans

LONDON (Reuters) – The Bank of England (BoE) set out proposals on Wednesday to end unfair advantages some banks have in calculating how much capital to hold for mortgages in a bid to increase competition.

Some bigger banks can use their own internal models for determining the risk weightings and therefore capital levels for home loans they have granted.

Typically this has resulted in lower capital levels than under the so-called standardised approach to risk weightings set out by regulators that many smaller lenders have to use.

The BoE’s banks supervision arm, the Prudential Regulation Authority (PRA), said it wanted to reduce risks that stem from “inappropriately” low risk weightings that can be thrown up by in-house models.

“For those firms whose risk weights may increase as a result of these proposals, and where capital requirements are not already determined by other capital measures (e.g. leverage), there would be costs

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Posted in home repair

Habitat for Humanity builds home for Bradenton family with Bank of America grant

Community Submitted
 |  Sarasota Herald-Tribune

To address the need for affordable, sustainable housing for working families, Manatee County Habitat for Humanity has partnered with Bank of America to construct a home for a deserving family. A $10,000 grant from Bank of America will support the completion of a new Bradenton home for aspiring nurse Jasmine Sittig, her daughter and son.

“We are committed to building safe, affordable homes that enrich our community,” said Diana Shoemaker, president and CEO of Manatee County Habitat for Humanity. “Our long-term partnership with Bank of America helps further our organization’s mission to create a world where everyone has a decent place to live.”

For 26 years, Manatee County Habitat for Humanity has built new homes for Habitat homebuyers and has provided critical home repairs for existing homeowners so they can stay safe and secure in their own homes and communities. As the coronavirus pandemic continues

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Posted in home

Deutsche Bank Revamps Work-From-Home Rule in Permanent Shift

(Bloomberg) — Deutsche Bank AG is revising its work-from-home policies in an effort to permanently reduce office space, adding to a growing number of lenders that are using lessons learned from the pandemic to lower costs.



a room filled with furniture and a large window: Empty desk space sits in the Deutsche Bank AG offices in Eschborn, Germany, on Monday, May 25, 2020. The trickle of workers returning to Deutsche Bank’s Frankfurt headquarters are finding a new reality of takeout lunches and coffee as the lender restricts social contact.


© Bloomberg
Empty desk space sits in the Deutsche Bank AG offices in Eschborn, Germany, on Monday, May 25, 2020. The trickle of workers returning to Deutsche Bank’s Frankfurt headquarters are finding a new reality of takeout lunches and coffee as the lender restricts social contact.

The bank’s leadership is working on a new “hybrid model” for how staff can split work between the office and their homes, Chief Executive Officer Christian Sewing said at a conference on Thursday.

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The new policies will eventually allow employees to have binding agreements on how many days per week they want to work away from the office, a person familiar with the matter said. The

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Posted in home

Deutsche Bank to Let More Staff Work From Home to Cut Offices

(Bloomberg) — Deutsche Bank AG is revising its work-from-home policies in an effort to permanently reduce office space and save costs.



a room filled with furniture and a large window: Empty desk space sits in the Deutsche Bank AG offices in Eschborn, Germany, on Monday, May 25, 2020. The trickle of workers returning to Deutsche Bank’s Frankfurt headquarters are finding a new reality of takeout lunches and coffee as the lender restricts social contact.


© Bloomberg
Empty desk space sits in the Deutsche Bank AG offices in Eschborn, Germany, on Monday, May 25, 2020. The trickle of workers returning to Deutsche Bank’s Frankfurt headquarters are finding a new reality of takeout lunches and coffee as the lender restricts social contact.

The bank’s leadership is working on a new “hybrid model” for how staff can split work between the office and their homes, Chief Executive Officer Christian Sewing said at a conference on Thursday.

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The new policies will eventually allow employees to have binding agreements on how many days per week they want to work away from the office, a person familiar with the matter said. The lender has developed estimates how big a share of total staff will work from home,

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Posted in home

Deutsche Bank NYC-Area Employees Can Stay Home Until Mid-2021

(Bloomberg) — Deutsche Bank AG told its New York City employees that they can continue working from home until mid-2021, in contrast to rival banks that are seeking to return staffers to offices.



a sign above a store: Deutsche Bank headquarters at 60 Wall Street in New York.


© Bloomberg
Deutsche Bank headquarters at 60 Wall Street in New York.

Workers in New York, New Jersey and Connecticut “face the continuing balancing of your work and your children’s sporadic school schedule” as well as concerns about public transportation, cleanliness and quality-of-life issues amid the Covid-19 pandemic, the German bank said in a memo to staff. Employees can keep working at home until July, when the company plans to leave its 60 Wall St. offices for new headquarters on Manhattan’s Columbus Circle.

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“We will ask you to return to the office when we move into our new building, Deutsche Bank Center, assuming the environment at that time allows a safe return to the office,”

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Posted in home improvement loans

Loan Growth to Aid Bank OZK’s (OZK) Top Line Amid Low Rates

Bank OZK OZK remains well-poised for top-line growth, supported by steadily improving loans along with its strategic growth initiatives. Moreover, given a solid balance sheet position, the company will likely continue to enhance shareholder value through efficient capital deployment activities.

However, pressure on margins remains a major near-term concern for Bank OZK. Continuously increasing operating expenses and the company’s exposure toward risky loans are other major headwinds.

The Zacks Consensus Estimate for its current-year earnings has been unchanged over the past 30 days. As a result, the company currently carries a Zacks Rank #3 (Hold).

Over the past six months, shares of Bank OZK have gained 12.7% compared with a rise of 3.1% of the industry it belongs to.

Looking at fundamentals, though the company’s revenues declined in 2019 and the first half of 2020, the same witnessed a CAGR of 22.8% over the last six years (2014-2019), mainly driven

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Continue Reading Loan Growth to Aid Bank OZK’s (OZK) Top Line Amid Low Rates