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Citi receiving regulatory approval from the Fed last Friday is an affirmation of improved capital positioning 

February 26, 2014
Mani, Value Walk

The Fed permitting Citigroup Inc to exit parallel Basel III reporting and transition to Basel III advanced approaches clearly amplifies Citigroup’s balance sheet strength, note Credit Suisse analysts.

Moshe Orenbuch and Jill Glaser Shea of Credit Suisse Group AG (ADR) point out that the Fed’s approval would benefit Citigroup Inc's Basel III Tier 1 Common Ratio target by 50 bps.

Citigroup benefits from its ‘capital build’ mode

As reported earlier, Bernstein analysts noted Citigroup Inc and Bank of America Corp should have the greatest amount of excess capital as a percentage of market caps over the next couple of years. The analysts pointed out that thanks to regulatory requirements towards minimum thresholds through Basel III and CCAR, banks have been in ‘capital build’ mode for the last several years.

Read more: Value Walk

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