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<keyword id="19913110" type="General" weightage="100" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword>, the Governor of <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI), on October 26, received award for A+ grade in <keyword id="23702898" type="General" weightage="20" keywordseo="Central-Bank-Report-Cards" source="keywords">Central Bank Report Cards</keyword> 2024, for the second consecutive year. The award, presented by <keyword id="22224722" type="General" weightage="20" keywordseo="Global-Finance" source="keywords" meta.keywordsubtype="org" meta.entityname="Global Finance" meta.hostid="261" meta.entityid="Global Finance">Global Finance</keyword> in <keyword id="21459434" type="General" weightage="20" keywordseo="Washington-D-C-" source="keywords">Washington D.C.</keyword>, USA, recognised RBI Governor's excellent performance and effective leadership in steering India's apex bank through complex economic challenges. In a social media post on X, RBI posted, "Governor @DasShaktikanta received the award for A+ grade in Central Bank Report Cards 2024, for the second consecutive year. Presented by Global Finance at an event held today in Washington DC, USA." The Central Bank Report Cards, published annually by Global Finance since 1994, grade the central bank governors of nearly 100 key countries, territories, and districts, as well as the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States and the Central Bank of West African States. Grades are based on an "A+" to "F" scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management. "A" represents an excellent performance, down through "F" for outright failure. Along with Das, Denmark's Christian Kettel Thomsen and Switzerland's Thomas Jordan were also accorded an A+ grade. Brazil's Roberto Campos Neto, Chile's Rosanna Costa, Harvesh Kumar Seegolam of Mauritius, Morocco's Abdellatif Jouahri, South Africa's Lesetja Kganyago and Sri Lanka's Nadalal Weerasinghe were amongst those who received the <keyword id="22446364" type="General" weightage="20" keywordseo="A-grade" source="keywords">A grade</keyword>. European Union's Christine Lagarde was given an A- grade. "After a difficult 2023, when geopolitical pressures gathered with tight monetary conditions to create a near-stagflationary environment in the eurozone, the central bank has managed to inch much closer to its 2% target with successive consumer price index (CPI) readings under 3% since February of this year, down to 2.4% in August", Global Finance noted on Lagarde's tenure. <keyword id="19951097" type="General" weightage="20" keywordseo="US-Fed" source="keywords">US Fed</keyword> Chairman Jerome Hayden Powell received an A- grade. Per the Global Finance website, "The Fed has debated in excruciating, and at times confusing, detail throughout this year when and whether to cut its benchmark rate from a 23-year high of 5.5%, a level held since July 2023. This September, the Fed finally turned the monetary ship toward a policy of easing, with a 50-basis point cut, which was at the higher end of forecasts." "Prior to the rate cut, economists agreed that confusion in the markets was a case of bad communication by the Fed, but Powell’s overall handling of policy has been praised. It is difficult to find much fault with the Fed’s approach to policymaking over the past year. The Fed has appropriately changed its tone in response", it continued. However, it also noted that more-substantial easing in the following months will be crucial to avoid a policy mistake and to secure Powell’s legacy. Powell's term as second-time chair of the Fed Reserve ends on May 15, 2026.

Shaktikanta Das receives award for A+ grade in Central Bank Report Cards 2024 in USA

<ul class="summary-list"><li>"The real wave of distress is just starting" for commercial property debt, Pimco's John Murray told Bloomberg.</li><li>He warned that bank failures could jump amid high exposure to commercial property loans.</li></ul>A "very high" concentration of distressed commercial real estate loans will be drive another spate of bank failures, Pimco's global head of real estate, John Murray, told <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-06-11/pimco-warns-of-more-regional-bank-failures-on-commercial-property-pain?cmpid=BBD061124_OUS&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=240611&amp;utm_campaign=openamericas">Bloomberg</a>."The real wave of distress is just starting," Murray said. Ever since interest rates spiked two years ago, heavy attention has been paid to commercial real estate as doubt grows over property owners' ability to refinance debt. Defaults have risen across the sector amid higher borrowing costs and slumping demand, with the latter especially true for office buildings, which have struggled against remote work trends. This week, Fitch Ratings <a target="_blank" href="https://www.businessinsider.com/office-crash-commercial-real-estate-crisis-debt-2008-vacancy-rate-2024-6">revised its office delinquency forecasts</a> up to 8.4% and 11% for 2024 and 2025, respectively.The main lenders to the sector have been <a target="_blank" href="https://www.businessinsider.com/28-banks-with-the-highest-commercial-real-estate-risk-2024-3">mid-sized regional banks</a>, and worries of fallout have intensified on Wall Street. According to Bloomberg, regional lenders who jumped into real estate have watched assets fall to a fraction of their peak value."As stressed loans grow due to maturities, however, we expect that banks will start selling these more challenged loans to reduce their troubled loan exposures," Murray said, adding that Pimco has loaded up on the loans being sold off by other institutions.The distress is already apparent in markets. Early this month, shares of <a target="_blank" href="https://markets.businessinsider.com/stocks/ax-stock?utm_medium=ingest&amp;utm_source=markets">Axos Financial</a> fell 15% after a <a target="_blank" href="https://markets.businessinsider.com/news/stocks/axos-financial-stock-price-selloff-hindenburg-research-short-seller-trump-2024-6">short seller targeted the bank's commercial real estate loan exposure. New York Community Bancorp plummeted in February</a> after its <a target="_blank" href="https://www.businessinsider.com/new-york-community-bank-nycb-shares-turmoil-ceo-internal-controls-crisis-2024-3">unexpected quarterly loss</a> was partially tied to exposure to the property market.Meanwhile, major dealers benefit from some protection, given post-2008 regulation that limits their CRE lending capacity, Murray told Bloomberg. But even with guardrails in place, bigger lenders are pulling away from the industry, amid the rise in defaults, he noted.At the same time, a study recently outlined that big banks may be more exposed to a potential meltdown than typically understood, given <a target="_blank" href="https://www.businessinsider.com/commerical-real-estate-crisis-bank-debt-contagion-reits-cre-lending-2024-5">indirect lending</a> via credit lines to real estate investment trusts. These funds are also shaking under the weight of the property sector, as REIT investors are quickly pulling out.Murray added that non-bank US debt funds are also an issue, given that they're responsible for over $200 billion in loans that are set to mature next year.

Bond giant PIMCO sees another wave of bank failures coming as commercial mortgage trouble mounts

<ul class="summary-list"><li>Fears of a potential banking crisis are on the rise as interest rates stay elevated.</li><li>Interest rates are now at their highest levels since 2001 as the Fed keeps an eye on inflation.</li></ul>Fears of more trouble in the banking sector are on the rise as investors and economists worry that high interest are causing trouble for regional lenders. With interest rates at their highest levels since 2001, higher borrowing costs have put pressure on banks' balance sheets as borrowers struggle to pay debts or avoid the credit market altogether. According to Moody's Analytics chief economist Mark Zandi, the longer interest rates stay high, the more the Fed risks damaging the economy. "Those rates are corrosive on the economy. They wear the economy down, and at some point, something could break," the economist told Yahoo Finance in a recent interview, pointing to the series of bank failures that rocked markets in early 2023. "That's the kind of thing I'm worried about in the context of persistently high interest rates."High rates have started to impact credit conditions. Bank-financed loans and leases have stagnated over the last year, rising by $226 billion through 2023. That's a snail's pace compared to the prior year when banks tacked on $1.19 trillion in loans and leases. Commercial bank loans in late payment rose sharply over the fourth quarter, with the <a href="https://fred.stlouisfed.org/series/DRALACBN" target="_blank" rel="noopener">delinquency rate rising to 1.4%,</a> Fed data shows.Economists are particularly worried about the commercial real estate industry, with <a href="https://www.businessinsider.com/real-estate-outlook-offices-commercial-debt-downturn-recession-wall-street-2024-3">nearly a trillion of debt</a> in the sector set to mature by the end of this year. Those loans will likely have to be refinanced at higher rates, which could spark a wave of defaults and stress bank balance sheets. Real estate investor <a href="https://www.businessinsider.com/billionaire-barry-sternlicht-predicts-weekly-bank-closures-inflation-interest-rates-2024-5">Barry Sternlicht</a> said he foresees one bank failure a week if the Fed doesn't lower interest rates soon. "The 1.9 trillion of real estate loans, that's a fragile animal right now," Sternlicht said in a recent interview. The US has only seen one bank fail so far this year, according to <a href="https://www.fdic.gov/news/press-releases/fulton-bank-na-lancaster-pennsylvania-assumes-substantially-all-deposits" target="_blank" rel="noopener">FDIC</a> data. Regulators took over the Philadelphia-based Republic First Bank in April, before selling most of the deposits and assets to regional lender Fulton Bank. "You have dozens of small regional banks in America that are exposed to real estate, are writing off loans, and the higher for longer phenomenon is having a direct impact on this second tier of the banking sector in America," Daniel Pinto, CEO of Stanhope Capital said in an interview with <a href="https://www.youtube.com/watch?v=e267Op3Yg_g&amp;ab_channel=BloombergTelevision" target="_blank" rel="noopener">Bloomberg</a> this week. "The Fed will very much be aware that if they keep rates at this high level, they may have another banking crisis on their hands."

Investors and economists are getting worried about more bank failures as interest rates stay high

In a significant move, the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="100" keywordseo="rbi" source="keywords">RBI</keyword>) has imposed penalties on <keyword id="19952948" type="General" weightage="20" keywordseo="axis-bank" source="keywords">Axis Bank</keyword> and <keyword id="19895995" type="General" weightage="20" keywordseo="hdfc-bank" source="keywords">HDFC Bank</keyword> for lapses in regulatory and statutory compliance. The fines, which amount to a total of ₹2.91 crore, highlight the central bank's ongoing efforts to ensure that financial institutions adhere to prescribed guidelines. The RBI levied a penalty of ₹1.91 crore on Axis Bank for violations that included contraventions of the <keyword id="19976511" type="General" weightage="20" keywordseo="banking-regulation-act" source="keywords">Banking Regulation Act</keyword> and non-compliance with specific RBI directions related to interest rates on deposits, Know Your Customer (KYC) norms, and collateral-free loans for agriculture. Meanwhile, HDFC Bank faced a ₹1 crore fine for failing to comply with directions concerning interest rates, customer service practices, and the use of recovery agents. <h2>Axis Bank: Key regulatory failures</h2>Axis Bank’s penalty stems from a supervisory evaluation conducted by the RBI based on its financial position as of March 31, 2023. Upon reviewing the bank’s activities, the RBI found several areas of non-compliance. One of the primary issues was the opening of savings deposit accounts in the names of ineligible entities, a direct violation of regulatory norms. Additionally, Axis Bank was found to have issued multiple customer identification codes to certain clients instead of assigning a Unique Customer Identification Code (UCIC), which is mandatory to avoid duplication and ensure proper monitoring of accounts. The bank also violated guidelines concerning agricultural loans. RBI regulations prohibit banks from asking for collateral for agricultural loans up to ₹1.60 lakh, but Axis Bank had obtained such collateral in certain cases. Lastly, a wholly-owned subsidiary of Axis Bank was found to be engaged in providing technology services—an activity that is not permissible for a banking company. This contravention added to the overall penalty levied by the central bank. <h2>HDFC Bank: Regulatory shortcomings</h2> In the case of HDFC Bank, the RBI’s investigation was based on its financial position as of March 31, 2022. The central bank uncovered several violations, including the offering of gifts, specifically covering the first-year premium for complimentary life insurance, which exceeded the permissible limit of ₹250. Moreover, HDFC Bank was found to have opened savings accounts in the names of ineligible entities, a violation similar to that of Axis Bank. Another significant failure was the bank’s inability to ensure that customers were not contacted by bank officials outside the permitted time frame of 7 am to 7 pm. <h2>RBI's Stance on Compliance</h2> While the RBI has been stringent in penalising both banks, it clarified that these penalties are based on lapses in regulatory compliance and are not reflective of the validity of any transactions or agreements between the banks and their customers. The central bank’s message is clear—financial institutions must adhere strictly to guidelines to maintain transparency, protect customers, and uphold the integrity of the banking system. The penalties serve as a reminder to all banks to stay vigilant and maintain high standards of compliance to avoid such financial and reputational damage in the future. Both Axis Bank and HDFC Bank have accepted the fines and are expected to take corrective actions to avoid future infractions. For customers, this action from the RBI is a reassurance that regulatory oversight remains a priority to ensure fair banking practices across the country.

RBI slaps fine of Rs 2.91 crore on Axis Bank and HDFC Bank: All details

The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords">Reserve Bank of India</keyword> has imposed <keyword id="21834852" type="General" weightage="20" keywordseo="monetary-penalties" source="keywords">monetary penalties</keyword> on three Non-Banking Financial Companies for <keyword id="20170050" type="General" weightage="20" keywordseo="non-compliance" source="keywords">non-compliance</keyword> with directions of <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> on <keyword id="20200326" type="General" weightage="100" keywordseo="housing-finance-companies" source="keywords">housing finance companies</keyword>. As per the official statement from RBI on Friday, it has imposed a monetary <keyword id="19899183" type="General" weightage="20" keywordseo="penalty" source="keywords">penalty</keyword> of Rs 5 lakh on <keyword id="23068625" type="General" weightage="20" keywordseo="Godrej-Housing-Finance" source="keywords">Godrej Housing Finance</keyword> Limited, Rs 5 lakh on <keyword id="20389260" type="General" weightage="20" keywordseo="Aadhar-Housing-Finance" source="keywords">Aadhar Housing Finance</keyword> Limited, and Rs 3.5 lakh on Housing and Urban Development Corporation Limited. These penalties by the regulator have been imposed in the exercise of powers conferred on RBI under the provisions of Section 52A of the <keyword id="20200606" type="General" weightage="20" keywordseo="National-Housing-Bank" source="keywords">National Housing Bank</keyword> Act, 1987. As per RBI, the statutory inspection of these companies was conducted by the National Housing Bank (NHB) with reference to their financial positions as of March 31, 2022. The RBI stated that based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the companies advising them to show cause as to why a penalty should not be imposed on them for their failure to comply with the RBI directions. After considering the companies' replies to the notice, oral submissions during the personal hearing, and additional submissions made by them, the RBI found that Godrej Housing Finance Limited failed to obtain two independent valuation reports before sanctioning certain loans of Rs 75 lakh and above. For Aadhar Housing Finance Limited, the RBI stated that the company charged interest on loans for a period prior to the date of the actual disbursement of the loan/issuance of the check to certain borrowers, in contravention of RBI directions on the 'Fair Practices Code.' The penalty on Housing and Urban Development Corporation Limited has been imposed because the company failed to undertake risk categorization of its customers during the financial year 2021-22, did not put in place a system for periodic review of risk categorization of accounts, and did not create a floating charge on the assets invested by it in terms of Section 29B of the NHB Act, in favor of its depositors, and register the same with the Registrar of Companies.

RBI imposes penalties on three housing finance companies for non-compliance with directions

<ul class="summary-list"><li>The Fed risks "breaking" something in the economy if it delays rate cuts, according to Moody's Mark Zandi.</li><li>Higher interest rates raise the odds of recession or bank failures, the economist warned.</li></ul>The Federal Reserve would be better off cutting interest rates as soon as possible, as there are parts of the economy at risk of "breaking" if rates don't come down, according to Mark Zandi, the chief economist of Moody's Analytics.Speaking to <a href="https://www.youtube.com/watch?v=6u7OcMU-cqY&amp;ab_channel=YahooFinance">Yahoo Finance</a> on Thursday, Zandi warned of the consequences that could arise if the Fed doesn't cut interest rates over the next few months. Keeping rates at their current level raises the risk of recession, and could expose other cracks in the financial system, Zandi warned."Those rates are corrosive on the economy. They wear the economy down, and at some point, something could break. The risk that they're taking here is that they undermine the economy and recession occurs," the top economist said. "If I were king for the day, I would really be cutting rates at this point, because I do think the economy could use that relief."The strength of the economy suggests that the US isn't close to hitting a recession, Zandi noted, but higher interest rates have already started to take their toll on the economy. Elevated borrowing costs have led to sluggish loan growth and are "eroding" credit conditions, he noted, which could stress banks' balance sheets. Zandi pointed to regional banking failures last year, with the initial <a href="https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3?utm_medium=ingest&amp;utm_source=markets">collapse of Silicon Valley Bank</a> sparking a brief banking crisis that led <a href="https://www.businessinsider.com/signature-bank-shut-down-by-regulators-depositors-bailed-out-2023-3#:~:text=The%20crypto%2Dfriendly%20Signature%20Bank,Bank%20being%20shuttered%20on%20Friday.">two</a> <a href="https://www.businessinsider.com/why-first-republic-failed-what-means-rest-banking-industry-2023-5">other</a> lenders to fail."That's the kind of thing I'm worried about in the context of persistently high interest rates," he said.Other market commentators have warned of <a href="https://markets.businessinsider.com/news/stocks/stock-market-crash-outlook-banking-crisis-regional-lenders-nycb-svb-2024-2?_gl=1*14c1o0e*_ga*MjMxMzA1Mzg2LjE2NTY0NDQxNTU.*_ga_E21CV80ZCZ*MTcxNTM1MzU0NS4xMTA2LjEuMTcxNTM1NTg0OC42MC4wLjA.">more banking turmoil</a> as borrowing costs stay elevated. Billionaire investor Barry Sternlicht predicted the <a href="https://www.businessinsider.com/billionaire-barry-sternlicht-predicts-weekly-bank-closures-inflation-interest-rates-2024-5">US could face weekly banking failures</a>, in part due to the impact of high interest rates on commercial property loans. But central bankers look poised to keep <a href="https://www.businessinsider.com/when-will-fed-cut-interest-rates-powell-fomc-inflation-relief-2024-4">interest rates higher for longer</a>, as the Fed is looking for more evidence that inflation is on track to fall back to its 2% target. Prices have grown hotter than expected for the last three months, with inflation clocking in at 3.5% in March.The Fed will likely wait another two or three months before moving to ease monetary policy, Zandi predicted, as central bankers are waiting on cooler inflation data.Markets are eyeing April inflation numbers to roll out next week, but hopes for aggressive rate cuts this year have been dashed. Investors are pricing in just one or two cuts by the end of 2024, according to the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html" target="_blank" rel="noopener">CME FedWatch tool</a>, down from six predicted at the start of the year.

'Something could break': The Fed risks recession, bank failures if it doesn't cut rates soon, economist Mark Zandi says

<keyword id="19951168" type="General" weightage="100" keywordseo="RBI-governor-Shaktikanta-Das" source="keywords">RBI governor Shaktikanta Das</keyword> was awarded an A+ grade, the highest of the lot, for the second time in a row by the <keyword id="22855254" type="General" weightage="20" keywordseo="Global-Finance-Magazine" source="keywords" meta.keywordsubtype="org" meta.entityname="Global Finance Magazine" meta.hostid="261" meta.entityid="Global Finance Magazine">Global Finance Magazine</keyword>'s <keyword id="22862849" type="General" weightage="20" keywordseo="Central-Banker-Report-Card-2024" source="keywords">Central Banker Report Card 2024</keyword>. While the full list will be available in October, Das was ranked the highest, along with Denmark's Christian Kettel Thomsen and Switzerland's Thomas Jordan. Fed chairman Jerome Powell scored an A- on the list. Before Das, former RBI governor Raghuram Rajan had also made to this list in 2015, securing A grade. Taking to X, PM <keyword id="19895781" type="General" weightage="20" keywordseo="Narendra-Modi" source="keywords">Narendra Modi</keyword> and <keyword id="19982618" type="General" weightage="20" keywordseo="Anand-Mahindra" source="keywords">Anand Mahindra</keyword>, who heads Mahindra and Mahindra, congratulated Das, with the billionaire calling him "a <keyword id="21663281" type="General" weightage="20" keywordseo="gold-medalist" source="keywords">gold medalist</keyword> in central bank Olympics". <div type="twitter" handle="narendramodi" handlename="narendramodi" favoritecount="0" retweetcount="0" id="1826100085672857771"></div> <div type="twitter" handle="anandmahindra" handlename="anandmahindra" favoritecount="0" retweetcount="0" id="1825919281957159052"></div> Brazil's Roberto Campos Neto, Chile's Rosanna Costa, Sri Lanka's Nandalal Weerasinghe and Vietnam's Nguyen Thi Hong received a A grade, while EU's Christine Lagarde, Cambodia's Chea Serey and Sweden's Erik Thedéen were amongst those receiving the A-grade. Since 1994, Global Finance has been grading the central bank governors of nearly 100 countries. They are rated at a scale of A+ (excellent) to F (failure) depending on their success across specific parameters such as inflation control, economic growth goals, currency stability and interest rate management. <h2>Who is Shaktikanta Das? </h2>With a seasoned bureaucratic legacy of 35 years, Das is an IAS officer from the 1980 Tamil Nadu cadre. He graduated from St. Stephens College, Delhi with a degree in history, and was appointed as the 25th governor of the apex bank five years ago, on December 12th, 2018. Prior to assuming this position, Das had also served as secretary in the Department of Revenue and also, Economic Affairs under the <keyword id="19908390" type="General" weightage="20" keywordseo="Ministry-of-Finance" source="keywords" meta.keywordsubtype="org" meta.entityname="Ministry of Finance" meta.hostid="261" meta.entityid="Ministry of Finance">Ministry of Finance</keyword>. He also served as the DM (district magistrate) for Dindigul and Kanchipuram. Having worked with 4 different finance ministers (Pranab Mukherjee, Arun Jaitley, P Chidambaram and Nirmala Sitharaman), Das had previously also been a member, 15th Finance Commission, along with being a G20 Sherpa in 2017. Das had been instrumental in preparation of India's last 8 union budgets, along with serving as India's alternate governor at various fora, like World Bank, Asian Development Bank, New Development Bank, Asian Infrastructure Investment Bank and more. Das has several economic laurels to his name. From drafting the Insolvency and Bankruptcy Code to executing tax devolution under GST for states and demonetisation, , Shaktikanta Das has played a crucial role in shaping India's overall economic health

Gold medalist in central bank Olympics-All you need to know about RBI governor Shaktikanta Das

<ul class="summary-list"><li>A faulty update from CrowdStrike caused a global tech outage on Friday.</li><li>CrowdStrike CEO George Kurtz has been down this road before.</li></ul>A good portion of the world stood still on Friday, resulting in one of the most <a target="_blank" href="https://www.businessinsider.com/things-you-need-know-crowdstrike-it-outage-airlines-disruption-2024-7">widespread tech outages</a> of all time.The outage disrupted operations at major banks, airlines, retailers, and other industries after <a target="_blank" class="" href="https://www.businessinsider.com/crowd-strike-outage-travel-chaos-tech-expert-2024-7">CrowdStrike</a>, a cybersecurity giant used by Microsoft and others, pushed a faulty update.Many industries were still digging out of the debacle on Saturday. The fallout is expected to last weeks.CrowdStrike owned up to its mistake, issuing an apology and a workaround on Friday. But it has yet to detail just how a destructive update could have been released without being caught by testing and other safeguards.Naturally, blame has begun to target the man at the center of it all: <a target="_blank" class="" href="https://www.businessinsider.com/crowdstrike-outage-why-taking-time-companies-recover-2024-7">CrowdStrike CEO George Kurtz</a>.Tech industry analyst Anshel Sag <a target="_blank" class="" href="https://x.com/anshelsag/status/1814426186933776846">pointed out</a> that this isn't the first time Kurtz has played a major role in a historic IT blowout.On April 21, 2010, the antivirus company McAfee released an update to its software used by its corporate customers. The update deleted a key Windows file, causing millions of computers around the world to crash and repeatedly reboot. Much like the CrowdStrike mistake, the McAfee problem required a manual fix.Kurtz was McAfee's chief technology officer at the time. Months later, Intel acquired McAfee. And several months after that Kurtz left the company. He founded CrowdStrike in 2012 and has been its CEO ever since."For those who don't remember, in 2010, McAfee had a colossal glitch with Windows XP that took down a good part of the internet," Sag wrote on X. "The man who was McAfee's CTO at that time is now the CEO of CrowdStrike." In response to a request for comment from Business Insider, CrowdStrike shared <a target="_blank" class="" href="https://www.crowdstrike.com/blog/falcon-update-for-windows-hosts-technical-details/">its latest blog posts</a> detailing the problem and its recommended fix, but did not elaborate on how the update slipped through the company's safety protocols. "We understand how this issue occurred and we are doing a thorough root cause analysis to determine how this logic flaw occurred," the company says in the post. "This effort will be ongoing. We are committed to identifying any foundational or workflow improvements that we can make to strengthen our process."

This is the 2nd time CrowdStrike CEO George Kurtz has been at the center of a global tech failure

<ul class="summary-list"><li>A new <a target="_blank" href="https://ir.citi.com/gps/9j79xHIa-vfPi785TYiSciffO0j4I0D52fI9LrahsLZEo6MpT4aM7SpwSFagAL9CIukqn2fwiJ_GNvDsLy4b6XEjftdK1abu">Citi report</a> says finance will be "at the forefront" of changes due to artificial intelligence.</li><li>Banking jobs are most at risk of AI-driven displacement, the report says.</li></ul>AI has already been thought to have the potential to change jobs in every industry profoundly. But, according to a <a target="_blank" href="https://ir.citi.com/gps/9j79xHIa-vfPi785TYiSciffO0j4I0D52fI9LrahsLZEo6MpT4aM7SpwSFagAL9CIukqn2fwiJ_GNvDsLy4b6XEjftdK1abu">new report</a> from Citigroup researchers, "finance will be at the forefront of the changes." "What a bank or financial firm looks like in the mid-2020s, be it retail or wholesale finance, looks very different to the mid-1980s, or the mid-1940s," the report said. "AI will repeat this cycle, possibly speeding it up."While general-purpose technologies, or GPTs, create new opportunities for innovation and can improve quality of life, "they also destroy existing ways of doing things," the report added. "And as such, they also create losers, especially in the short term."With data pulled from Accenture Research and the World Economic Forum, Citi's researchers said that about 67% of banking jobs have "higher potential" to be automated or augmented by AI. That means "banking jobs" (which the report didn't narrowly define) have the highest potential for AI-led job displacement.However, according to Citi, a decline in head count may be partially or completely offset by an increase in AI-related compliance managers and ethics and governance staff.One upside Citi pointed out, however, is that they estimate the profit pool for the 2023 global banking sector "could increase 9% or $170 billion from the adoption of AI, rising from just over $1.7 trillion to close to $2 trillion."<div type="image" title="Citi chart on AI's impact on finance jobs" height="404" width="809" msid="111121475" hostid="261" sizebytes="47826"></div><h2 id="55206a59-8c97-4ea0-9092-6016a29b5a8f">AI adoption in finance will be slow</h2>The Citi researchers believe the "pace of implementing modern AI tools in financial services, in particular, GenAI, will be relatively slow when compared to other sectors," they said in the report, in part because of the "highly regulated nature of the sector and lack of 'ready to go globally aligned rules.'""A regulatory landscape is evolving in some jurisdictions, but it is a challenging road ahead for financial services firms when it comes to implementation because countries are moving to different speeds, taking different approaches towards regulation and in some cases changing their position on whether to regulate," it said. In an interview featured in the report, Shameek Kundu, the head of financial services and chief strategy officer at TruEra, weighed in on the same point."I would describe traditional AI adoption in financial services as: widespread, shallow, and inconsequential," said Kundu.Kundu explains that there are "a large number of enterprises experimenting with AI across different use cases," yet "limited scale of AI adoption across use cases" and a "limited perceived impact of AI system failures on critical business operations."He cited a 2022 Bank of England survey, which found that "72% of firms reported using or developing machine learning applications," yet the "median number of ML applications for mainstream UK financial institutions to be just 20-30" and "less than 20% of the already few AI use cases were critical to business."

More than half of banking jobs could be automated by AI — but banks will be slow to adopt, Citi report says

<keyword id="19922074" type="General" weightage="20" keywordseo="Reserve-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank" meta.hostid="261" meta.entityid="Reserve Bank">Reserve Bank</keyword> Deputy Governor <keyword id="19918795" type="General" weightage="20" keywordseo="Swaminathan" source="keywords">Swaminathan</keyword> J on Wednesday said implementation of <keyword id="22784242" type="General" weightage="100" keywordseo="risk-based-premium" source="keywords">risk-based premium</keyword> for <keyword id="20132734" type="General" weightage="20" keywordseo="deposit-insurance" source="keywords">deposit insurance</keyword> merits consideration as it will ensure that institutions with higher risk profiles contribute more to the insurance fund. Speaking at a conference in Jaipur, he also said that as the financial sector becomes more digitised, deposit insurers must work closely with regulators and supervisors to strengthen oversight mechanisms. This includes regularly updating <keyword id="19946068" type="General" weightage="20" keywordseo="regulatory-frameworks" source="keywords">regulatory frameworks</keyword> to incorporate emerging risks associated with <keyword id="19989657" type="General" weightage="20" keywordseo="digital-payments" source="keywords">digital payments</keyword>, <keyword id="19906883" type="General" weightage="20" keywordseo="cybersecurity" source="keywords">cybersecurity</keyword>, and <keyword id="22180855" type="General" weightage="20" keywordseo="fintech-innovations" source="keywords">fintech innovations</keyword>. By adopting a proactive stance, deposit insurers can help ensure that <keyword id="19912054" type="General" weightage="20" keywordseo="financial-institutions" source="keywords">financial institutions</keyword> under their purview are adequately prepared to manage these risks, thereby safeguarding depositor confidence. Swaminathan was addressing the International Conference of the International Association of Deposit Insurers- Asia Pacific Regional Committee (IADI-APRC) hosted by the Deposit Insurance Credit Guarantee Corporation (DICGC). He further said the implementation of risk-based premium for deposit insurance "merits consideration". "By tying insurance premiums to the level of risk posed by individual financial institutions, deposit insurers can incentivize banks to adopt stronger risk management practices. "This approach not only enhances the overall stability of the financial system but also ensures that institutions with higher risk profiles contribute more to the insurance fund," the deputy governor said. He also emphasised that deposit insurers can further mitigate technology risks by relying on supervisory rating assessments that incorporate evaluation of a financial institution's technological and operational resilience. By using these assessments as a basis for setting insurance premiums or determining intervention strategies, deposit insurers can ensure that their actions are informed by a comprehensive understanding of each institution's risk profile, Swaminathan added. The senior <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> official also asked deposit insurers to prioritise crisis preparedness and develop comprehensive contingency plans that account for technology-induced disruptions. This includes conducting regular stress tests and simulations to assess the potential impact of cyber incidents or fintech failures on financial institutions and the broader financial system, he said. The evolving technological landscape presents both significant challenges and opportunities for deposit insurers. By adopting a proactive, risk-based approach, including enhanced oversight, risk-based premiums, reliance on supervisory ratings, faster claim settlements, and industry collaboration, deposit insurers can effectively manage these risks, the deputy governor said.

Risk-based premium for deposit insurance merits consideration: RBI Deputy Governor Swaminathan

<ul class="summary-list"><li>Silicon Valley Bank was taken over by regulators on Friday.</li><li>The closure of the bank, a favorite in the tech community, sent shockwaves across markets.</li></ul>In times of crisis on Wall Street, one must ask: Who is winning, and who is losing?Depending on where you stand, the unfortunate/fortunate reality of finance is that it is a zero-sum game. When one persons loses, another typically wins. Which brings us to <a href="https://www.businessinsider.com/svb-failure-what-the-hell-happened-2023-3">the downfall of Silicon Valley Bank</a>. Federal regulators stepped in Sunday night <a href="https://www.businessinsider.com/us-government-bails-out-silicon-valley-bank-depositors-fdic-2023-3">with a bailout plan to protect depositors of the bank</a> and quell wider market fears. However, as of Monday afternoon, there was still plenty of panic across the markets about the knock-off effects.<h2>Here's a rundown of who stands to gain, and lose, the most as a result of the fall of Silicon Valley Bank. </h2><h2>Winners</h2><div type="image" title="jp morgan citibank" height="1000" width="1333" msid="98615133" hostid="261"></div>JPMorgan: Big banks will likely see their deposit base grow as customers of regional banks pull their money over fears their bank will experience a run next. However, the largest bank in the country by assets is <a href="https://www.businessinsider.com/jpmorgan-big-banks-benefit-from-silicon-valley-bank-collapse-2023-3">positioned to capture the most new market share</a>, marking yet another win for CEO Jamie Dimon. Short sellers: If you <a href="https://citywire.com/pro-buyer/news/how-one-pm-saw-trouble-brewing-at-silicon-valley-bank/a2411590?re=106905&amp;refea=1819037" target="_blank" rel="noopener">bet big against SVB or Signature Bank</a>, you are sitting pretty. Same goes for any short positions you opened up <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-run-collapse-contagion-failure-bailout-financial-crisis-2023-3?_ga=2.4077168.1718460740.1678628441-410193916.1666127244&amp;_gl=1*1p55d9b*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY3ODcyNTIyNC40ODMuMS4xNjc4NzMyNTQxLjAuMC4w">against other regional banks.</a>Fintechs offering treasury services and corporate accounts: SVB banked nearly half of all US tech startups, which means there are a lot of companies looking for help managing their cash. And while the big banks, as mentioned, will certainly be a landing spot, so too will fintechs offering similar services. Brex already reportedly <a href="https://www.cnbc.com/2023/03/10/fintech-brex-got-billions-of-dollars-in-silicon-valley-bank-deposits-thursday.html">received billions of dollars in deposits from SVB customers</a>. Senator Elizabeth Warren: Love or hate her, the Massachusetts senator has been one of the most vocal critics of Wall Street and (what she deems to be) a lack of regulation on the industry. The failure of SVB will be viewed as confirmation of what she has been preaching. She's already taken a bit of a victory lap in a <a href="https://www.businessinsider.com/svb-bailout-elizabeth-warren-student-loan-borrowers-limbo-banks-2023-3">New York Times opinion piece that criticizes the bailout.</a>Private-credit managers: These so-called shadow banks could fill the gap left behind by SVB's failure, offering to lend to tech startups. It's the latest boost for an industry <a href="https://www.businessinsider.com/private-debt-credit-market-risks-outlook-2023-2022-11">that had swollen to $1.2 trillion in late 2022.</a> Here's a rundown of <a href="https://www.businessinsider.com/private-credit-power-players-debt-executives-blackstone-kkr-ares-2022">the key people shaping the private-credit market.</a>Wall Street traders who bought SBV clients' deposits for pennies on the dollar: Has an easier buck ever been made? Silicon Valley Bank's obituary had barely been written before firms were offering to <a href="https://www.businessinsider.com/some-svb-customers-taking-big-haircuts-deposits-raise-funds-fast-2023-3">buy up customers' uninsured deposits for as little as 55 cents on the dollar.</a> That deal turned out to be a windfall for anyone who was able to pull it off, as federal regulators soon guaranteed all deposits. Tech startups that didn't use SVB or Signature Bank: The middle- and back-office staff must be absolutely buzzing! What a win for the behind-the-scenes folks. It's tough to see so much of the industry in pain, but I am sure the treasury and risk management folks at companies that avoid the fray are celebrating.Anyone that had bad news to share over the weekend: You could have gotten away with announcing A LOT of bad things this weekend without anyone noticing. Down round? Layoffs? Lawsuits? None of it stood a chance of stopping the SVB news train. <h2>Losers</h2><div type="image" title="stock market crash" height="3425" width="4567" msid="98615134" hostid="261"></div>Bank shareholders: Sunday night's bailout announcement from federal regulators made one thing clear: SVB shareholders are on their own. The rest of the market took note, <a href="https://markets.businessinsider.com/news/stocks/svb-collapse-first-republic-western-alliance-zions-pacwest-biden-investors-2023-3?_gl=1*1wklxr*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY3ODcyNTIyNC40ODMuMS4xNjc4NzMzNTUzLjAuMC4w">as shares in other regional banks have tanked on Monday.</a>Venture capitalists: Let's set aside the argument of whether or not VCs <a href="https://www.businessinsider.com/venture-capitalists-tech-founders-turned-on-silicon-valley-bank-2023-3">deserve some of the blame</a> for causing a bank run at SVB. The bank's failure, and its subsequent bailout, has now caught the attention of the general public. Regulators made clear taxpayers won't be on the hook for any losses, but that nuance might be lost on most. Instead, some will simply see <a href="https://www.businessinsider.com/silicon-valley-bank-fdic-bailout-regulations-2023-3">a community that has long eschewed more regulation</a> getting bailed out by the government. It's easy to see how VCs get painted as the new bogeymen of finance.Startups: The short-term <a href="https://www.businessinsider.com/startups-silicon-valley-bank-worried-wont-pay-employees-next-week-2023-3">concern for startups over making payroll</a> this week seems to have been largely averted. But it's one thing to have all your cash back. It's another to not know where to put it. SVB was a key ally to tech startups, offering services and structuring deals in ways most other banks wouldn't. <a href="https://www.businessinsider.com/jpmorgan-big-banks-benefit-from-silicon-valley-bank-collapse-2023-3">Who will fill that gap for the industry?</a>Regional banks: SVB's bailout was meant to provide assurances that bank deposits are secure and quell fears over additional bank runs. However, the opposite seems to have occurred, <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-run-collapse-contagion-failure-bailout-financial-crisis-2023-3?_ga=2.28652028.1718460740.1678628441-410193916.1666127244&amp;_gl=1*ifat9y*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY3ODcyNTIyNC40ODMuMS4xNjc4NzMzNTM0LjAuMC4w">at least among smaller regionals.</a> Shares in First Republic Bank and First Horizon, among others, <a href="https://markets.businessinsider.com/news/stocks/svb-collapse-first-republic-western-alliance-zions-pacwest-biden-investors-2023-3?utm_medium=ingest&amp;utm_source=markets">have been brutalized.</a>Goldman Sachs: The involvement of one of Wall Street's most powerful investment banks in the SVB saga can't go unnoticed. The bank <a href="https://www.businessinsider.com/goldman-sachs-svb-silicon-valley-bank-failure-2023-3">advised SVB on its failed plan for a stock offering</a>. Perhaps SVB was already too far gone at that point. SXSW: The annual conference draws thousands of attendees, especially those in the tech community. But the death of SVB <a href="https://www.businessinsider.com/at-sxsw-tech-employees-react-to-silicon-valley-bank-failure-2023-3">has cast a pall over the traditional lively event.</a> To be honest, it's probably nothing <a href="https://www.businessinsider.com/sxsw-events-austin-work-trip-2023-3#hop-on-a-fun-float-with-frontera-tube-tours-1">a few Tex-Mex tacos and a float down the San Marcos River can't wash away.</a>Crypto: I know the crypto market has had a tough go of it, but this feels like a massive miss. Can you imagine the Twitter threads and LinkedIn posts if SVB failed in the midst of the crypto boom in 2021? Thought pieces about how crypto could have avoided this problem and why you can't trust traditional finance. The price of bitcoin might have surpassed $100,000.

The winners and losers of the Silicon Valley Bank failure

At 24, David Nuñez still <a target="_blank" href="https://www.businessinsider.com/gen-z-living-with-parents-save-money-housing-crisis-cost-2024-2">lives at home with his parents</a> in Tampa, Florida. He chips in his share of the phone bill, the Netflix subscription, and the groceries, but thanks to his parents' generosity, he doesn't pay any rent. Contrary to what some might think, Nuñez isn't an unemployed freeloader — he has a full-time job in marketing. But his $33,000 annual salary barely makes a dent in local rent prices; downtown, a one-bedroom costs more than $2,000 a month. He simply can't afford it."I'm fortunate enough to have a family that understands that it's kind of a rough time right now," he told me.Despite a strong job market, many <a target="_blank" href="https://www.businessinsider.com/adult-moved-back-home-with-parents-who-pay-bills-rent-2024-7">Gen Zers are still relying on the bank of Mom and Dad</a> to make ends meet. In a survey conducted by the Pew Research Center last fall, only 16% of 18- to 24-year-olds said they were completely financially independent, whereas in 1980, 32% of 22-year-olds could say the same. In the past decade, <a target="_blank" href="https://www.businessinsider.com/most-parents-give-gen-z-millennial-kids-financial-assistance-pew-2024-1">the share of parents who say they have supported an adult child</a> has doubled, to about 60% in 2023 from about 30% in 2013, according to Pew. Some parents have reported spending <a target="_blank" href="https://www.savings.com/insights/financial-support-for-adult-children-study">an average of $1,400 a month</a> helping their adult kids with groceries, tuition, and more."You're told throughout your life that you move out at 18 or 19 years old and you're kind of expected to have your own life already," Nuñez said. "But I only know one person in my friendship group who is not living with their parents anymore."This new norm is leaving parents frazzled. Paying for college tuition is one thing, but many aren't sure how to handle their <a target="_blank" href="https://www.businessinsider.com/adult-kids-live-at-home-hard-expensive-but-worth-it-2024-5">children remaining comfortably in the nest</a> and relying on them for food, rent, and other expenses well beyond college. Nuñez's mother lived with her aunt before moving to America, so she's happy to let her son live with her. "I would rather you be here and know that you are OK," she told him. But for others, the aid comes with a question: At what point should parents cut the financial umbilical cord?Despite being better educated than older generations and <a target="_blank" href="https://www.axios.com/2023/11/22/gen-z-boomers-work-census-data">increasingly likely to be employed full time</a>, Gen Zers have faced significant financial hurdles.For one, modest wage increases have been overshadowed by substantial student-loan debt. Over the past 20 years, the average student debt has more than doubled, to just over $37,000 per borrower. "More and more young people are seeking higher education," Monica Kirkpatrick Johnson, a professor of sociology at Washington State University, said. "They're staying in school longer, and while they're doing that, they are delaying their earning capacity."The rising cost of housing is another barrier. <a target="_blank" href="https://www.businessinsider.com/housing-market-affordability-homebuyer-earnings-income-price-trends-covid-comparison-2024-2">Zillow estimated this year that people needed 80% more income </a>to comfortably afford to buy a home than they did four years ago. And rent is taking up more and more of the budget: Zillow found that the average rent in America had gone up by 60% since 2015.Wages, meanwhile, haven't kept up with inflation, meaning people are more strapped for cash. All told, Kirkpatrick Johnson said, many young adults are "entering jobs that do not allow them to be self-sufficient." In this perfect storm, many are opting to <a target="_blank" href="https://www.businessinsider.com/adult-daughter-lives-at-home-pros-cons-2024-7">take shelter in their childhood homes</a>. The share of 25- to 34-year-olds <a target="_blank" href="https://www.businessinsider.com/gen-z-living-with-parents-save-money-housing-crisis-cost-2024-2">living with their parents</a> in the US has climbed by 87% over the past two decades. Other milestones, like getting married and starting a family, are happening later and later.In his book "The Oxford Handbook of Emerging Adulthood," Jeffrey Jensen Arnett, a psychology professor at Clark University, defined adulthood as taking responsibility, making independent decisions, and becoming financially independent. But increasingly, people aren't meeting that definition until they're closer to 30. He decided that, in the modern economy and culture, the time between 18 and 29 when young adults are still getting their footing needed its own name, calling it "<a target="_blank" href="https://www.businessinsider.com/pandemic-gen-z-effects-emerging-adulthood-psychology-2020-5">emerging adulthood</a>."Not everyone is on board with that. In a 2019 Pew Research survey, 64% of Americans said they believed <a target="_blank" href="https://www.businessinsider.com/adults-financially-independent-boomers-gen-z-parents-support-adult-kids-2023-4">young adults should be financially independent by 22</a>. "Our institutions haven't totally caught up yet," Kirkpatrick Johnson said, adding that, without the kinds of social safety nets that other countries have, like subsidized student loans and publicly funded healthcare, American parents are often left to provide cover.Some <a target="_blank" href="https://www.businessinsider.com/inflation-high-rent-gen-z-living-at-home-permanently-2022-7">parents are happy to provide a backstop</a>. Jo Clark, 50, always knew she'd keep providing for her two daughters after college. "My mindset was always to support my daughters wherever possible," she told me. Clark's older daughter, 26, lived at home briefly, and now her youngest daughter, who's 24, lives in the extension Clark built on her Surrey, England, home for this very purpose. She didn't expect her daughter to contribute anything to the household costs, but her daughter insisted and now contributes £150 a month. "I wanted them to have the opportunity to be able to save for their future," Clark said. "My aim is that they could save for a deposit for their own house."Clark says that even if her daughter moves out in the future, the door will always be open for her to come back. "I'm not terribly financially affluent myself," she said, "so this is my way that I can give my children the stepping stone to be able to buy their own place."Teresa Bailey, a senior wealth strategist at Waddell &amp; Associates, argued that Gen X parents were among the earliest to demonstrate an openness to providing so much financial support. "This generation of parents went through 2008, 2009, 2010 as relatively young adults, and they really experienced financial hardship," she told me. "They are in many ways the product of that mindset and want things to be different for their children." Ali Lupo, a millennial with a 10-month-old daughter in upstate New York, agreed that part of the trend toward extra support comes down to a shift in parenting styles. "Every generation tries to improve and do better than the last," she said. "My grandparents' generation, you threw the kids out of the house in the summer and passed them a sandwich through the door. My parents' generation were more protective and wanted to do more to help. I think now we are even more like that, sometimes to a fault."She and her husband plan to contribute to the costs of their daughter's education, health insurance, and wedding — and they don't foresee ever charging her rent. "When you sign up as a parent," Lupo said, "you're a parent for life."Some parents might be more willing to provide financial support because they want to feel like a good parent. In the Pew survey last fall, 71% of parents of young adults said their children's successes and failures reflected on the job they'd done as parents — a sentiment that was particularly strong among upper-income parents. But the support doesn't always come easy; some parents are sacrificing their own financial security by dipping into their retirement or emergency savings to help their adult children. In a Bankrate survey last year, 31% of parents with adult children said they had made what they considered significant financial sacrifices to help their kids."Parents have the least amount of time to financially recover. The young adult has their entire life ahead of them," Bailey said. "There's not always consideration given to that."Some are concerned that parents are enabling their children to delay milestones by providing so much support. A 2019 report from the Urban Institute found that in a sample of young adults who were 25 to 34 between 1999 and 2005, only about 68% of those who lived with their parents at those ages had achieved independent living a decade later, compared with nearly all those who rented or owned a home.On the flip side, JP Krahel, the chair of the accounting department at Loyola University Maryland, told me it's better for young people to save up and limit their expenses if possible: "Technically, if you're living out of your car on the side of the street, are you financially independent? Maybe, but you don't have a great trajectory."It can be a tough act to balance. The Lupos plan to leave some expenses, such as college tuition, to their daughter when she reaches an appropriate age. "For us," Lupo said, "it's about setting her up for success, giving her love and support, and empowering her to make the best choices possible — but not enabling her."Cody and Erika Archie took a different approach. The Texas couple began charging their daughter $200 a month in rent the month after she graduated from high school in 2022. "It's not so much rent that she couldn't afford it, but it also was enough that it kind of stung when she had to pay it," Cody Archie said. "If you're going to live under our roof as an adult, you can pay for the long showers you take, the food you eat, and help contribute to the household." Archie said that if their daughter had attended college while living at home, they wouldn't have charged rent and would have helped with her tuition. But she decided to skip college and now works as an insurance sales representative. "When you're working a 40-hour-a-week job, you're an adult," Archie said. "That's when you need to be off your mom and dad's bank account."He said he and Erika, both of whom are in their mid-40s, believe that coddling adult children does them a disservice and fails to teach them important lessons in financial responsibility. "If you don't kick them out of the nest and force them to get into the world and start fending for themselves, there's really no need for them to," Archie said. "They've got to go on their own, or you have to force them out to help them."When India Anderson turned 20 and decided to move in with her boyfriend, her mother cut off most financial support. As a full-time student in Orlando, Anderson needed to find a way to pay her bills, so she <a target="_blank" href="https://www.businessinsider.com/gen-z-business-startups-entrepreneurship-digital-era-branding-social-media-2024-3">started a hair-braiding business</a> on campus. Now, at 22, she has graduated and grown her business. She still lives with her boyfriend in Orlando, splitting rent and bills. The only bill her mother still covers is her phone."I wasn't raised with the proper financial literacy to be thrust into the real world," she said. "That transition, at least for me, wasn't that smooth." Anderson struggled to save money and dealt with some unexpected expenses she had to put on her credit card. She's also worried about getting kicked off her family's health-insurance plan when she turns 26. At the same time, she valued <a target="_blank" href="https://www.businessinsider.com/millennial-retired-early-financial-independence-fire-strategies-six-figure-income-2024-5">financial independence</a>. "It's an expensive sacrifice," she said.Anderson's 20-year-old brother still lives at home with their mother and 9-year-old sister, something Anderson sees as putting a strain on their mother. "He has a job, but he spends his money on computer games and Uber Eats every day," she said. Still, she doesn't wish him the abrupt exit she experienced. "Some independence would do him good," she said, "but at what cost?"Most parents seem to want what's best for their kids, but navigating what that actually looks like in a shifting economy isn't easy. When Nuñez told his parents he wanted to move in with his girlfriend later this year, they were nervous. "They're less like, 'Get out of my house,'" he said, "and more like, 'We don't want you leaving if you're just going to have to come back.'"<a target="_blank" rel="" href="https://www.businessinsider.com/author/eve-upton-clark">Eve Upton-Clark</a> is a features writer covering culture and society.

Why Gen Zers aren't leaving the nest

<ul class="summary-list"><li>First Republic Bank said it's getting additional funding from the Federal Reserve and JPMorgan Chase.</li><li>It's been a wild weekend for banks after SVB was <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-failure-fdic-wall-street-regulator-finance-investing-2023-3?_gl=1*8nbyho*_ga*MTMwNjYzODQ5MS4xNjMzMzIwMTA2*_ga_E21CV80ZCZ*MTY3ODY2ODk2OC4yNjI3LjEuMTY3ODY3MzQ4Ni4wLjAuMA.." rel="">shut down by regulators</a> following a bank run.</li></ul>First Republic Bank said Sunday it's getting additional funding from the Federal Reserve and JPMorgan Chase after the regional bank's share price slumped sharply amid <a href="https://www.businessinsider.com/how-silicon-valley-bank-imploded-2023-3">Silicon Valley Bank's </a><a href="https://www.businessinsider.com/how-silicon-valley-bank-imploded-2023-3">implosion</a><a href="https://www.businessinsider.com/how-silicon-valley-bank-imploded-2023-3">.</a>This funding injects $70 billion of unused liquidity into San Francisco-based First Republic, the bank said in a <a href="https://ir.firstrepublic.com/static-files/fdf1c5f6-e1df-4932-9576-9a789d63ddfc" target="_blank" rel="noopener">Sunday filing. </a>"First Republic's capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks," Jim Herbert, the bank's executive chairman, and Mike Roffler, its CEO, said in the statement.This additional funding excludes what the bank is eligible to receive under the new <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm" target="_blank" rel="noopener noreferrer">Bank Term Funding Program</a> announced by the Federal Reserve on Sunday, First Republic added in its filing. The Bank Term Funding Program offers one-year loans to banks that pledge collateral. It is backstopped with $25 billion from the Treasury's Exchange Stabilization Fund, which has a <a href="https://home.treasury.gov/system/files/206/ESF-January-2023-FS_Trunc_Notes.pdf" target="_blank" rel="noopener">net balance of $38 billion.</a>First Republic — which has more than 80 branches across the US — said in its <a href="https://ir.firstrepublic.com/static-files/89a1df66-7e28-4491-86aa-a331900db222" target="_blank" rel="noopener noreferrer">latest 10-K filing</a> that it held $176.4 billion in deposits at the end of 2022 of which 68%, or $119.5 billion, was uninsured.The bank has been in damage control mode all weekend. In a <a href="https://ir.firstrepublic.com/static-files/295faa27-f208-4936-81ff-6c8bfa0fb6b5" target="_blank" rel="noopener">regulatory filing on Friday</a>, First Republic also told customers its liquidity position remained "very strong," in order to reassure them that their deposits were safe.The development came after a <a href="https://www.businessinsider.com/silicon-valley-bank-svb-biggest-bank-failure-since-2008-crisis-2023-3">wild weekend for banks</a> — Silicon Valley Bank was <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-failure-fdic-wall-street-regulator-finance-investing-2023-3" rel="">shut down by California regulators</a> Friday and taken over by the Federal Deposit Insurance Corporation (FDIC) <a href="https://www.businessinsider.com/svb-failure-what-the-hell-happened-2023-3" rel="">after its share price collapsed</a> following a failed $2.3 billion capital raise. The events followed a <a href="https://www.businessinsider.com/svb-failure-what-the-hell-happened-2023-3">slump in the share price</a> of SVB Financial Group, the bank's parent company, after it <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0000719739/eede72d3-1cc6-45ee-89cf-3dc4f59469ad.pdf" target="_blank" rel="noopener nofollow">said it was facing a $1.8 billion loss</a> due to a $21 billion firesale of its bond portfolio. This in turn <a href="https://www.businessinsider.com/svb-silicon-valley-bank-startups-worry-run-pull-accounts-2023-3" rel="">spurred concerns</a> among tech VCs and founders about Silicon Valley Bank's financial stability, triggering a bank run and sparking fears of contagion at regional banks such as First Republic.First Republic Bank's shares fell 15% on Friday to $81.76 apiece. They slumped 65% in pre-market trade on Monday at 4.48 a.m. ET. The bank's stock is down 33% so far this year.

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