EUR/USD 1.15859
0.069%
Gold 4224.13
0.317%
Oil 82.506
-3.085%
USD/JPY 160.024
0.039%
GBP/USD 1.34221
0.049%
GBP/JPY 214.791
0.097%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 12th - In May, the total amount of cross-border RMB settlement under current account items was RMB 1.67 trillion, of which goods trade, services trade and other current account items were RMB 1.28 trillion and RMB 0.39 trillion respectively; the total amount of cross-border RMB settlement for direct investment was RMB 0.58 trillion, of which outward direct investment and foreign direct investment were RMB 0.22 trillion and RMB 0.36 trillion respectively.June 12th - At the end of May, the outstanding balance of domestic and foreign currency loans was 284.79 trillion yuan, a year-on-year increase of 5.4%. The outstanding balance of RMB loans at the end of May was 281.02 trillion yuan, a year-on-year increase of 5.5%. RMB loans increased by 9.11 trillion yuan in the first five months. By sector, household loans decreased by 631.4 billion yuan, of which short-term loans decreased by 694.2 billion yuan and medium- and long-term loans increased by 62.8 billion yuan; loans to enterprises and institutions increased by 9.63 trillion yuan, of which short-term loans increased by 3.77 trillion yuan, medium- and long-term loans increased by 4.99 trillion yuan, and bill financing increased by 699.9 billion yuan; loans to non-bank financial institutions decreased by 279.7 billion yuan. At the end of May, the outstanding balance of foreign currency loans was 553.2 billion US dollars, a year-on-year increase of 2.6%. Foreign currency loans increased by 8.2 billion US dollars in the first five months.June 12th - At the end of May, the balance of domestic and foreign currency deposits reached 352.38 trillion yuan, a year-on-year increase of 8.7%. The balance of RMB deposits at the end of May was 344.45 trillion yuan, a year-on-year increase of 8.7%. In the first five months, RMB deposits increased by 15.77 trillion yuan. Among them, household deposits increased by 5.63 trillion yuan, non-financial enterprise deposits increased by 1.26 trillion yuan, fiscal deposits increased by 1.91 trillion yuan, and deposits of non-bank financial institutions increased by 5.64 trillion yuan. At the end of May, the balance of foreign currency deposits reached 1.16 trillion US dollars, a year-on-year increase of 17.5%. In the first five months, foreign currency deposits increased by 103.2 billion US dollars.June 12th - Preliminary statistics show that the total social financing scale for the first five months of 2026 reached 17.48 trillion yuan, 1.16 trillion yuan less than the same period last year. Specifically, RMB loans to the real economy increased by 9 trillion yuan, 1.38 trillion yuan less than the same period last year; foreign currency loans to the real economy increased by 115.3 billion yuan (equivalent to RMB), 211.6 billion yuan more than the same period last year; entrusted loans decreased by 103.1 billion yuan, 91.8 billion yuan more than the same period last year; trust loans increased by 5.7 billion yuan, 57 billion yuan less than the same period last year; undiscounted bank acceptance bills decreased by 17.2 billion yuan, 151.4 billion yuan more than the same period last year; net financing of corporate bonds reached 1.67 trillion yuan, 757.7 billion yuan more than the same period last year; net financing of government bonds reached 5.67 trillion yuan, 634 billion yuan less than the same period last year; and domestic equity financing of non-financial enterprises reached 230.5 billion yuan, 79.9 billion yuan more than the same period last year.June 12th - Preliminary statistics show that as of the end of May 2026, the outstanding amount of total social financing was 458.81 trillion yuan, a year-on-year increase of 7.7%. Specifically, outstanding RMB loans to the real economy totaled 277.4 trillion yuan, a year-on-year increase of 5.5%; outstanding foreign currency loans to the real economy (converted to RMB) totaled 1.14 trillion yuan, a year-on-year decrease of 4.3%; outstanding entrusted loans totaled 11.22 trillion yuan, unchanged year-on-year; outstanding trust loans totaled 4.67 trillion yuan, a year-on-year increase of 7.1%; outstanding undiscounted bank acceptance bills totaled 2.13 trillion yuan, a year-on-year decrease of 6.2%; outstanding corporate bonds totaled 35.69 trillion yuan, a year-on-year increase of 8.4%; outstanding government bonds totaled 100.6 trillion yuan, a year-on-year increase of 15.1%; and outstanding domestic shares of non-financial enterprises totaled 12.43 trillion yuan, a year-on-year increase of 4.7%.

After A Fed Rise, The U.S. Banks Stress Index Might Deteriorate

Aria Thomas

Jun 17, 2022 11:09

14.png


An indicator of credit risk in the U.S. banking sector may be exhibiting symptoms of strain as the Federal Reserve's aggressive rate rise path heightens economic pain forecasts.


According to Refinitiv data, the so-called FRA-OIS spread, which measures the difference between the U.S. three-month forward rate agreement and the overnight index swap rate, jumped to 29.50 basis points on Thursday, its widest level since May 23. The value was -11.66 basis points earlier in the week.


Widely regarded as a barometer for banking sector risk, a wider spread indicates that interbank lending risk has increased.


The recent increase in the margin between forward rate agreements and overnight index swap rates is worrisome, according to J.P. Morgan Asset Management global market analyst Jordan Jackson. "As the Fed becomes more hawkish, recession fears increase, hence boosting the underlying credit risk."


The Federal Reserve hiked interest rates by 75 basis points on Wednesday, its largest rise since 1994. Markets have been rocked by the prospect of more dramatic tightening, and fears of a future recession have intensified.


This month, the central bank also started letting bonds to expire off its more than $8 trillion balance sheet without replacing them, a procedure known as quantitative tightening that Jackson warned may possibly deplete the financial system's liquidity.


As the world's biggest holder of U.S. government debt lowers its market presence, this sentiment is shared by other investors who are concerned that market conditions may deteriorate.


"Now that quantitative tightening has formally begun, reserve draining has been rather steady over the last several months," Jackson said, adding that he expects the FRA-OIS disparity to become much wider.


Wall Street also perceives an increase in the likelihood of default by large banks.


On Thursday, credit default swap (CDS) spreads for JP Morgan, Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and Bank of America (NYSE:BAC) were nearing two-year highs.


Suggestion