Eurodollar University

Banks Around The World Are Preparing For Something BIG

Nov 29, 2023
Banks worldwide are preparing for potential instability by hoarding liquidity, derisking, and engaging in hedging activities. The decreasing rates in the 52-week bill auction indicate anticipation of lower interest rates. De-risking strategies and cash hoarding among US banks reflect economic uncertainty. The decline in consumer loans and the contraction of lending portfolios by European banks further highlight cautious behavior. Overall, banks are taking precautions and preparing for something.
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