Jump to content
House Price Crash Forum
Sign in to follow this  
Eddie_George

Global Financial Institutions Are Back In The Red, In A Big Way

Recommended Posts

Based on data recently published by the Wharton School of the University of Pennsylvania, [the infographic] shows the world's 50 biggest banks based on their assets - that is, $99 trillion (£64 trillion) in 2012, up from $91.5 trillion (£59.1 trillion) in 2010, two years after the 2008 crash. It's topped by Deutsche Bank, which had assets of $2,822 billion (£1,823.6 billion) - a massive 81.1 percent of Germany's GDP. The UK's figures are close behind: Barclays had assets of $2,545 billion (£1,645 billion) - that's 103.5 percent of the UK's GDP. HSBC's $2,652 (£1,716) was 108 percent.

You'll have to go to the link for a magnified view.

Infoporn.jpg

Share this post


Link to post
Share on other sites

We must be an order of magnitude worse off than everyone else considering our size in the grand global scheme of things.

Very comforting. :blink:

Share this post


Link to post
Share on other sites

We must be an order of magnitude worse off than everyone else considering our size in the grand global scheme of things.

Very comforting. :blink:

Yep, we're up there with China and the USA.

Share this post


Link to post
Share on other sites

The chart shows loans as a percentage of assets. RBS only has 35%

I thought loans would have been a much higher percentage of assets.

What other assets do banks keep :huh:

Share this post


Link to post
Share on other sites

The chart shows loans as a percentage of assets. RBS only has 35%

I thought loans would have been a much higher percentage of assets.

What other assets do banks keep :huh:

Complex financial products structured out of .......loans. :D

Share this post


Link to post
Share on other sites

The chart shows loans as a percentage of assets. RBS only has 35%

I thought loans would have been a much higher percentage of assets.

What other assets do banks keep :huh:

Are the asset values mark to unicorn?

Share this post


Link to post
Share on other sites

Useless analysis! Unless you have a breakdown of what the loans are against, it's apples and pears. For example, I'd rate the lending practices of the aussies banks as VERY different even between the set of four. Some will crunch in a downturn way before the others, IMHO.

Share this post


Link to post
Share on other sites

Useless analysis! Unless you have a breakdown of what the loans are against, it's apples and pears. For example, I'd rate the lending practices of the aussies banks as VERY different even between the set of four. Some will crunch in a downturn way before the others, IMHO.

+1 though I have no idea about the Aus banks.

Even sticking to residential property loans (and of course this covers far more) it's pretty obvious a 125% LTV NINJA sub-prime loan can't be compared with a 50% LTV loan to someone at a 3x income multiple. "Loans" means nothing - what loans?

Share this post


Link to post
Share on other sites

No wonder NAB is trying to get rid of UK CRE exposure:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=191749

The oppurtunity I was referring to apropos that thread was a chance to buy something for 50% off 2007 nominal.I'm in no rush given that this is the first wave of capital calls-and it's hard to believe NAB will be the last-I've spoken to a surveyor riend who works in the Administration side of the business and he thinks in the end,it'll go for 75% off peak-or less- as it can't be mortgaged at the moment.

WSJ says

'The Financial Services Authority calculated last October that between 5% and 8% of U.K. residential mortgages were in forbearance.'

I'd reason that if they invoked reasonable valuations of LTV covenants,that there'd be a lot more beaches thereof than the figure above would indicate.Hope is clearly a strategy these days.

Share this post


Link to post
Share on other sites

Useless analysis! Unless you have a breakdown of what the loans are against, it's apples and pears. For example, I'd rate the lending practices of the aussies banks as VERY different even between the set of four. Some will crunch in a downturn way before the others, IMHO.

Fair point but even the banks probably don't really know what lurks beneath the surface of their balance sheets.

Share this post


Link to post
Share on other sites

+1 though I have no idea about the Aus banks.

Even sticking to residential property loans (and of course this covers far more) it's pretty obvious a 125% LTV NINJA sub-prime loan can't be compared with a 50% LTV loan to someone at a 3x income multiple. "Loans" means nothing - what loans?

Exactly one bank could have 100% sensible loans and another could have 0% loans and all their assets in dodgy investments that are about to blow up.

Share this post


Link to post
Share on other sites

Fair point but even the banks probably don't really know what lurks beneath the surface of their balance sheets.

Actually, the canny ones do. Certainly some of the Aussie and Asian ones do. Well, some of their people do. But often it won't be written down anywhere very.....open.....and it sure as hell won't be shared with the plebs in the business who might leak it if its bad news.

Share this post


Link to post
Share on other sites

The oppurtunity I was referring to apropos that thread was a chance to buy something for 50% off 2007 nominal.I'm in no rush given that this is the first wave of capital calls-and it's hard to believe NAB will be the last-I've spoken to a surveyor riend who works in the Administration side of the business and he thinks in the end,it'll go for 75% off peak-or less- as it can't be mortgaged at the moment.

WSJ says

'The Financial Services Authority calculated last October that between 5% and 8% of U.K. residential mortgages were in forbearance.'

I'd reason that if they invoked reasonable valuations of LTV covenants,that there'd be a lot more beaches thereof than the figure above would indicate.Hope is clearly a strategy these days.

I read in a recent BoE report that a third of UK Banks' CRE loan portfolios were subject to some sort of forebearance, although that covers a whole spectrum from loan covenents to completely non-performing. I can't find it at the moment, but it was pretty shocking stuff.

Share this post


Link to post
Share on other sites

The chart shows loans as a percentage of assets. RBS only has 35%

I thought loans would have been a much higher percentage of assets.

What other assets do banks keep :huh:

Bonds, equities etc. Top-rated Sovereign debt has a Basel II risk weighting of zero making it highly attractive for banks to hold, and distorting the market for said debt.

Share this post


Link to post
Share on other sites

Useless analysis! Unless you have a breakdown of what the loans are against, it's apples and pears. For example, I'd rate the lending practices of the aussies banks as VERY different even between the set of four. Some will crunch in a downturn way before the others, IMHO.

HSV Commodores

Toyota Landcruisers

Ford Explorers

Negatively geared (ie loss making) investment properdees

Fishing boats on trailers with 300hp petrol engines

Down payments on Bali time shares

A lot of 'ink'

silicon boobs

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.