Bank Capital Planning: 2015 Style
Now that the economy has healed, liquidity is plentiful and bank performance is on the verge of getting back to normal, we thought we would revisit what a bank’s capital structure looks like and the associated loss given defaults for each. In 2015, we sit in the middle of an ideal story that can be told about banking that goes along the lines of record credit quality for new origination, the highest barriers to entry the industry has ever seen, higher interest rates, better bank regulatory supervision and enhanced risk management.
