Samson: Iraqi banks acquire 99% of government bonds
4th October, 2021
On Monday, a government source said that most of the bonds offered by the government are bought by banks through their cash reserves with the Central Bank of Iraq, while citizens are satisfied with only one percent of those bonds
From time to time, the Central Bank issues bonds in favor of the Ministry of Finance, for the purpose of financing some public expenditures, as it recently issued construction bonds in denominations of 500 thousand dinars and one million dinars
The source said, "The banks use the compulsory cash reserve at the bank, which ranges between 35-40% of its capital of 250 billion dinars, for the purpose of purchasing the bonds offered by the government through the central bank
The source added, "99% of these bonds are bought by banks and one percent is bought by the citizen," noting that "buying bonds by banks achieves great profits for them through the high interest offered, and the amounts that banks buy for these bonds are frozen with the bank as a reserve. You will drive it by buying these bonds
The source noted, "The government issues bonds from time to time due to its lack of financial liquidity to finance public expenditures," noting that "the government owes the Central Bank more than 21 trillion dinars as a result of borrowing funds during the last period to cover employee salaries and other expenses LINK
August 05, 2021
Federal Reserve Board announces the individual capital requirements for all large banks, effective on October 1
For release at 4:30 p.m. EDT
Following its stress test earlier this year, the Federal Reserve Board on Thursday announced the individual capital requirements for all large banks, effective on October 1. Those capital requirements ensure that the large banks tested will hold roughly $1 trillion in high-quality capital—enough to survive a severe recession and still be able to lend to households and businesses.
Large bank capital requirements are in part determined by the Board's stress test results, which provide a risk-sensitive and forward-looking assessment of capital needs. The below table shows the total common equity tier 1, or CET1, capital requirements for each bank, which is made up of several components, including:
Minimum capital requirement, which is the same for each firm and is 4.5 percent;
The stress capital buffer, or SCB, requirement, which is determined from the stress test results, and is at least 2.5 percent; and
If applicable, a capital surcharge for global systemically important banks, or G-SIBs, which is at least 1.0 percent.
The Board also affirmed the stress test results for one bank that requested reconsideration, HSBC North America Holdings Inc. The reconsideration process involved an independent group—separate from the stress testing group—that analyzed and evaluated the results. While affirming HSBC's stress test results for this cycle, the Board also directed the staff to conduct a closer examination of issues raised in the reconsideration process to inform continuing improvements in its stress testing methodology for next year's stress tests.
MilitiaMan: From the looks of these Bonds at 250 billion dinars has a striking similarity to the UST requirement for banks to have quality assets. Imagine if this is similar and timed accordingly.
If an international calculation is applied to a new exchange rate like that of the AMFs recent valuations of approximately 3xSDR... One would see just how striking that maybe..
IMO. There are no coincidences imo... ~ MM