We've seen hardly any growth in commercial and industrial loans...

We've seen hardly any growth in commercial and industrial loans in the past two years.

  One reason:   A deeply inverted yield curve creates an extremely challenging lending environment for banks.  

Instead, we're witnessing a resurgence of a trend where these financial institutions are utilizing their capital to accumulate government securities.  

These institutions are gradually evolving into the primary lenders of government debt, reminiscent of the 1940s when yield curve control was necessary to enforce financial repression despite inflation surpassing historical norms.  

Treasury holdings by US banks are now standing at 1.5 times the total outstanding commercial and industrial loans.

https://x.com/TaviCosta/status/1782095266079818075

Citi says sell big four banks

Joshua Peach

Citi is advising investors to ditch Australia’s major banks, after downgrading the outlook for two of the big four banks in a note over the weekend.

Analyst Brendan Sproules downgraded ANZ and Westpac, adding existing sell ratings on Commonwealth Bank and National Australia Bank.

“Having a sell on the banks is an increasingly consensus call, and we expect heightened focus on relativities to be a more important portfolio consideration,” Sproules said.

Of the four banks, Spoules said Westpac was the broker’s preferred exposure, adding that Commonwealth Bank had a stretched valuation. NAB was Citi’s least preferred of the four banks.
The downgrades follow similar negative revisions for the big four from Macquarie last month.