FHFA Considering Recommending Curbs On Advances To Big Banks; U.S. Regulator Weighs Limiting Big Banks' Borrowing From FHLBS
Portfolio Pulse from Benzinga Newsdesk
The Federal Housing Finance Agency (FHFA) is reportedly considering recommending limitations on big banks' borrowing from Federal Home Loan Banks (FHLBs). This news could potentially impact the banking sector, including ETFs like KBE, KRE, SPY, and XLF.
June 30, 2023 | 6:24 pm
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NEGATIVE IMPACT
The potential limitations on borrowing from FHLBs could impact KBE, an ETF that tracks the banking sector.
KBE tracks the banking sector. If big banks face limitations on borrowing from FHLBs, it could negatively impact their performance, which would in turn impact KBE.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
KRE, an ETF that tracks regional banking, could be impacted by potential limitations on borrowing from FHLBs.
KRE tracks regional banking. If big banks face limitations on borrowing from FHLBs, it could negatively impact their performance, which would in turn impact KRE.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
SPY, an ETF that tracks the S&P 500, could see some impact from potential limitations on borrowing from FHLBs, given the presence of big banks in the index.
SPY tracks the S&P 500, which includes big banks. If these banks face limitations on borrowing from FHLBs, it could negatively impact their performance, which would in turn impact SPY.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
XLF, an ETF that tracks the financial sector, could be impacted by potential limitations on borrowing from FHLBs.
XLF tracks the financial sector. If big banks face limitations on borrowing from FHLBs, it could negatively impact their performance, which would in turn impact XLF.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80