Banks are dipping into their capital buffers during the coronavirus pandemic. Whether they will retain enough to keep adding loans and paying dividends depends largely on what the economy does.
In the first quarter, the six biggest U.S. banks on average saw a 0.6 percentage point drop in their key capital ratio, the so-called common equity tier 1 ratio. This ratio indicates how much loss-absorbing capital they hold as a percentage of a risk-adjusted measure of total assets. The biggest drop by percentage points was at JPMorgan...
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