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Indian banks are expected to have steady growth in earnings and returns over the next 3–4 years, according to a recent report by Jefferies. It expects a 13% compound annual growth rate (CAGR) in loan growth for banks between FY24 and FY27, helmed by a supportive environment and expected adjustments in interest rates. "We expect steady growth in earnings and stable returns, Over FY24-27, the banks we cover should see 13% CAGRin loans We factor 25-50 bps cut in rates, &amp; depending on timing, NIMs will move," the report said. Depending on the timing, these rate cuts could impact banks' <keyword id="20076541" type="General" weightage="20" keywordseo="net-interest-margins" source="keywords">net interest margins</keyword> (NIMs), which measure the difference between interest income generated and interest paid to depositors. The report also notes that banks' net interest income (NII), a critical metric that is reflective of how much a bank earns from its lending, could grow at a steady 12% CAGR, which would support overall earnings growth. <h2>Rate cuts probable next year</h2>Per SBI Mutual Fund's monthly outlook for November 2024, while markets were initially speculating possible rate reductions in December this year or February next year these chances now stand dampened due to two reasons. First, elevated CPI numbers in September, which stood at a nine-month high, underlined the stickiness of food inflation. Secondly, RBI governor Das recently highlighted his hawkish stance at a conference, stating that "rate cuts at this stage would be premature and risky’. The report further adds that February 2025, or even April, would be a better time to discuss repo rate cuts in India. Even <keyword id="19985925" type="General" weightage="20" keywordseo="bank-credit-growth" source="keywords">bank credit growth</keyword> has continued to outpace deposit growth for two years now. However, they seem to be inching closer in the recent past. For instance, in October 2024, while bank credit growth remained at 12.7%, the deposit growth rate followed closely at 11.8%. This also means that banks are witnessing an elevated bank credit-to-deposit ratio, standing at 77% in October. <h2>Risks in unsecured lending </h2>However, Jefferies noted some areas of caution that could influence growth in other revenue streams, particularly fees. Growth in fees may be at risk due to expected declines in the disbursal of unsecured loans, which generally carry higher interest rates and generate higher fees for banks. October saw stress and defaults rising in the unsecured lending space, prompting the RBI to intervene. As a result, unsecured loans by banks have only grown by 12.1%, the lowest since the pandemic. Despite these risks, the report expects banks' return on assets (ROA) and return on equity (ROE) to remain healthy, underscoring the sector's stable profitability potential. The report also highlights that while the Nifty Banks index has risen by 19% over the past year, it has still underperformed the broader Nifty index, which delivered 27% returns in the same period. BSE Bankex has been along similar lines, generating returns worth 19% over one year. While the Nifty banks' index has a YTD (yield to date) of 7.63%, it continues to trail Nifty's YTD of 11.30%

Indian banks to have steady growth in earning over next 3-4 years, fees from unsecured lending may dip, notes Jefferies report

Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of microfinance and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, <keyword id="46717" type="General" weightage="20" keywordseo="IndusInd-bank" source="Orion">IndusInd Bank</keyword> set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e., an <keyword id="79363" type="General" weightage="20" keywordseo="npa" source="Orion">NPA</keyword>, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals, i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, <keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword>, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv, from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending installments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honor any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its <keyword id="763994" type="General" weightage="20" keywordseo="Gross-NPA" source="Orion">gross NPA</keyword> for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. <keyword id="62152" type="General" weightage="20" keywordseo="IDFC-bank" source="Orion">IDFC Bank</keyword>’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in unsecured loans, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. Kotak Mahindra Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical Bollywood headmaster who runs his dominion with an iron fist and takes things (and ceiling rates) into their own hands. However, that's a story for another day.

Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

<ul class="summary-list"><li>Four therapists shared what their clients from different tax brackets discuss in sessions.</li><li>Money can be a source of stress for both those on lower incomes as well as the <keyword id="20766455" type="General" weightage="20" keywordseo="ultra-rich" source="keywords">ultra-rich</keyword>. </li></ul>We may think getting that big promotion with a hefty pay rise would solve all our problems, but would it? As Business Insider learned from interviewing therapists with clients across the socioeconomic spectrum —from <a target="_blank" class="" href="https://www.businessinsider.com/alices-dinks-henrys-fires-economy-guide-2024-6">ALICEs to HENRYs</a> and beyond — while it's easy to see why having a low income can cause stress — particularly with <a target="_blank" class="" href="https://www.businessinsider.com/wealth-inequality-so-bad-will-take-230-years-end-poverty-2024-1">growing wealth inequality</a> — rich people have their own worries. So what are people across the tax brackets discussing with their therapists? <h2>People on low incomes</h2>Anna Nathanson, a licensed clinical social worker and therapist based in New York, runs a website called Low-Cost Therapy NYC. She said that "financial instability really eats at people's souls." It affects not only people's physical well-being but also their interpersonal relationships and self-worth, which is linked to money for many. Clients might talk about <a target="_blank" href="https://www.businessinsider.com/personal-finance/rules-spender-saver-relationship-build-wealth-2021-9">arguing about money with their partner</a>, job hunting, having to rely on friends for childcare, or how their income affects their self-esteem, Nathanson said. She has also helped patients work through chronic trauma responses, such as depression or nightmares, that they have developed from repeatedly not having their basic needs met. <div type="image" title="A couple sat, arguing." height="1414" width="2121" msid="114215104" hostid="261"></div>Dr. Ashley Castro, a New York-based clinical psychologist who started Healwise, an affordable and accessible therapy nonprofit, said: "Poverty brings with it so many different kinds of stress." She added: "There is a lot that's out of their control that can be difficult emotionally. It's just a reality that life can be tough if you don't have a lot of money." <h2><keyword id="23623471" type="General" weightage="20" keywordseo="ALICEs" source="keywords">ALICEs</keyword></h2><a target="_blank" href="https://www.businessinsider.com/alice-living-paycheck-to-paycheck-without-government-assistance-snap-medicaid-2024-5">ALICEs</a> (Asset Limited, Income Constrained, Employed) are people who earn enough to sit above the federal poverty line but struggle with the cost of living. <div type="image" title="A birds-eye view of a woman typing on a calculator and looking at her bills" height="1414" width="2121" msid="114215097" hostid="261"></div>Traci Williams, a psychologist and certified financial therapist in Atlanta, said that people with little money can end up overspending and getting into debt because they might be "trying to live a life that they desire for themselves that they cannot yet afford." On the other hand, people who have become ALICEs — for instance those who have lost wealth or grew up in financially stable homes butdon't make as much as their parents — may develop <a target="_blank" href="https://www.businessinsider.com/personal-finance/money-anxiety-scarcity-mindset-generational-trauma-2022-6">scarcity mindsets</a>, Williams said. As such, while some ALICEs will discuss in therapy their need to hoard money others talk about wanting to "live it up" and spend recklessly when they are able, she said. <h2>HIFIs</h2><a target="_blank" href="https://www.businessinsider.com/americans-feel-financially-insecure-wont-stop-luxury-shopping-millennials-genz-2024-5">HIFIs</a> (<keyword id="23623474" type="General" weightage="20" keywordseo="high-income" source="keywords">High Income</keyword>, Financially Insecure) earn a high salary, but spend so much they end up living paycheck to paycheck. Just over half of people who make $100,000 or more live paycheck to paycheck, a 2023 report by PYMNTS, a data-analytics company, and LendingClub, a financial-services company, found. <div type="image" title="A woman in a green jumper, looking out a window and away from her phone." height="1086" width="1629" msid="114215098" hostid="261"></div>"That is not because they don't have enough, but it's often because they are overspending or not financially aware," Williams said. This may be due to the <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-causes-inflation">increased cost of living</a>, which has contributed to many people's <keyword id="22941859" type="General" weightage="20" keywordseo="financial-insecurity" source="keywords">financial insecurity</keyword>, she said. Many of Williams' clients say they also feel pressured to spend above their means in order to keep up with the lifestyles of their peers that they see on social media. <h2><keyword id="23623470" type="General" weightage="20" keywordseo="HENRYs" source="keywords">HENRYs</keyword></h2>Some <a target="_blank" href="https://www.businessinsider.com/henry-student-loans-six-figure-income-millennial-gen-z-retirement-2023-11">HENRYs</a> (High Earners, Not Rich Yet) might seem wealthy to others, but still worry about having enough money, Williams said, because "it's all relative." She gave the example of higher-earning clients who <a target="_blank" href="https://www.businessinsider.com/personal-finance/investing/how-to-invest-in-stocks">invest in stocks</a> and worry markets could crash at any time, despite that being unlikely. <div type="image" title="A stressed men looking a stock market graph on a laptop." height="1414" width="2121" msid="114215100" hostid="261"></div>HENRYs who didn't grow up with much money might tell Nathanson that they feel guilty being wealthy, she said. They might also talk about feeling uncomfortable receiving gifts because they don't feel deserving, she said. Or they may feel the reverse and have an unnecessary scarcity mindset. Such people often talk to Nathanson in therapy about feeling "really <a target="_blank" href="https://www.businessinsider.com/young-people-are-developing-money-dysmorphia-2024-7">nervous about spending</a> anything and feeling like they can't indulge in any way." Two HENRYs in a couple, meanwhile, might want to discuss tension in their relationship if they have different ways of thinking about shared wealth, she said. <h2>Ultra-high net worth individuals</h2>"The stereotype is that rich people problems aren't real problems, that they're just in therapy talking about really inconsequential trivial things," Castro said. "But my patients have real issues and they genuinely struggle." Dr. Paul L. Hokemeyer, a licensed marriage and family therapist and clinical consultant to <a target="_blank" href="https://www.businessinsider.com/what-ultra-high-net-worth-investors-are-buying-family-office-2024-6">ultra-high net-worth people</a>, based in Colorado, agreed with Castro. "At the core, people of wealth suffer from the same mental health and relational issues as the rest of humanity," he said. <div type="image" title="A man and woman sit far apart in a fancy apartment." height="1414" width="2121" msid="114215106" hostid="261"></div>For example, Hokemeyer helps people who feel "objectified" and "vilified" because of their wealth; who feel pressure to use it in productive ways; and who deal with the "highly stressful and chaotic" process of starting a business. Well-off children and teens, meanwhile, must often deal with the expectation that they will get into <a target="_blank" class="" href="https://www.businessinsider.com/extreme-moves-gifts-parents-use-get-kids-into-prestigious-preschools-2020-6">elite educational institutions</a> with intense workloads, Castro said. The pressure to achieve can cause problems with perfectionism and anxiety disorders, as well as depression from a lack of downtime and fun. Williams said that she sees a lot of guilt and hopelessness in her wealthier clients, because they realize they can't make as big a difference in the world as they would like to. And, as people live longer, she said that some worry about not having enough money to sustain their lifestylesas they get older. Wealth can also cause issues within families, she said, with disagreements over wills, estates, and spending on vacations. According to Hokemeyer, "wealth can be both a blessing and a curse," but, at the end of the day, "emotions are emotions, pain is pain." Correction: October 16, 2024 — An earlier version of this story misspelled the first name of a psychologist and financial therapist in Atlanta. Her name is Traci Williams, not Tracy. An earlier version also misstated the name of a financial-services company. It’s LendingClub, not LendingCompany.

From ALICEs to HENRYs, here's what people across the tax brackets discuss in therapy

With <keyword id="19899478" type="General" weightage="20" keywordseo="US" source="keywords">US</keyword> unemployment rates jumping from 4.1% to 4.3% in July 2024, the highest ever since October 2021, global markets fear an impending <keyword id="19950649" type="General" weightage="100" keywordseo="recession" source="keywords">recession</keyword> and a slowdown hitting the world's largest economy. Amidst a weakening labor market, even as <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword> remain consistent at a 23-year peak range of 5.25-5.5%, the number of unemployed people in the US inched up to 7.9 million in July. Between January and June this year, the US economy added an average of 2,22,000 new jobs every month, which were significantly lower than the monthly average of 2,51,000 in 2023, and 3,77,000 in 2022. However, in July, the economy only managed to generate 1,14,000 new jobs. Even Goldman Sachs economists have upped the probability of recession hitting the US by 2025 to 25%, from its previous estimate of 15%. And while they maintain that there still remain "several reasons to not fear a slump", it is hard to overlook the fact that July's employment figures have already breached the Sahm rule, which is considered a tipping point for foreseeing economic slowdowns. But is that indication enough, or are we reading too much into short-term market developments? Lets find out. First, what is this Sahm rule? Named after formed Fed economist Claudia Sahm, the rule says that a recession is almost certain, and more likely already underway, if the <keyword id="20054242" type="General" weightage="20" keywordseo="unemployment-rate" source="keywords">unemployment rate</keyword> (based on a three-month moving average) inches up by 0.5% from its lowest point in the past year. It has been failsafe so far, proving right for every US recession since 1970. But even as Sahm herself, and other economists believes that a recession is not imminent this time around, despite weak employment figures, the ongoing shockwaves in the global markets are hard to ignore. Japan's Nikkei 225 plunged 4,451 points today, and closed the day around 12.4% lower, registering one of the worst losses it has seen since 1987. Closer home, Sensex fell sharply from the 80,000 mark it had previously breached by about 2,500 points to trade at around 78,400.21. Nifty also dipped around 2.5%, and was trading at about 24,098 points. Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services Ltd notes, the significant domestic equities sell-off has been primarily driven by weak global sentiments following disappointing U.S. economic data, particularly non-farm payrolls, manufacturing PMI, and jobless claims, which have raised concerns about a potential economic slowdown in the world’s largest economy. Additionally, the yen carry trade has further dampened global sentiment. "However, given the prevailing bullish trend, it is unlikely that prices will remain low for an extended period. A recovery from these lower levels is a probable scenario", he continued. Even Anup Kurup, CIO at InCred Global Asset Management sees this as short-term, largely because of the "positioning in the derivative markets with many players selling volatility across many asset classes. A big move up in VIX on Friday after the disappointment in the jobs report would have likely triggered margin calls on the short volume strategies, which were mushrooming off late", he explained. So, what exactly is a recession? This is when a country experiences a temporary decline in its overall economic activity, which has a cascading effect on lowering its GDP, income, sales and employment numbers. Generally, if the a country's GDP continues to fall for two successive quarters, it is said to have entered recession. When there is a recession, individuals and businesses tend to spend less, which further hinders wealth creation, industrial activity and trade, perpetuating the cycle. However, in the first three months of 2024, US household wealth skyrocketed to a record $160 trillion, while household net worth touched $5.1 trillion, largely driven by the significant exposure of Americans to the stock markets, and the subsequent gains. Notably, last recession (2008-09) was marked by ballooning household debt, which grew just 2.19% in the last quarter. So, while a recession might not be immediately on the cards, the upcoming months of September and December, where the Fed is likely to announce significant rate cuts, will be tracked intently. A rate cut would increase money circulation in the economy, thereby boosting spending and countering recession. Transfer Pricing and International Economics subject matter expert Akash Kalra notes that this crash indicates a shift from rapid growth to a slower growth trajectory, rather than an immediate recession. Despite recent weak economic indicators such as higher unemployment claims and soft data in construction, durable goods orders, home sales, and manufacturing, the overall assessment is that the U.S. economy is transitioning to a slower growth rate, which is more vulnerable but not necessarily indicative of a recession. "It is important to note that consumer spending has been growing at a moderate rate. In addition, capital spending remains strong due to robust corporate balance sheets and interest in AI technology. The housing market is subdued but stable, and government spending continues to rise. Trade positions are unfavorable but not deteriorating. The <keyword id="19904332" type="General" weightage="20" keywordseo="Federal-Reserve" source="keywords" meta.keywordsubtype="org" meta.entityname="Federal Reserve" meta.hostid="261" meta.entityid="Federal Reserve">Federal Reserve</keyword> has signaled a potential rate cut in September due to softer economic data and diminishing <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword>. Accordingly, the U.S. GDP growth is expected to slow down for the rest of 2024 before picking up again in 2025", he continues.

With stock markets crashing worldwide, are fears of a recession loading in the US pre-mature?

The bad assets or gross <keyword id="19964545" type="General" weightage="20" keywordseo="NPAs" source="keywords">NPAs</keyword> of commercial <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> fell to a 12-year low of 2.8% in March 2024 and may go down further to 2.5% by the end of the current fiscal, said the <keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="269" meta.entityid="RBI">RBI</keyword>'s <keyword id="678734" type="General" weightage="20" keywordseo="Financial-Stability-Report" source="Orion">Financial Stability Report</keyword> (FSR) released on Thursday. <keyword id="19982351" type="General" weightage="20" keywordseo="Scheduled-Commercial-Banks" source="keywords" meta.keywordsubtype="org" meta.entityname="Scheduled Commercial Banks" meta.hostid="269" meta.entityid="Scheduled Commercial Banks">Scheduled Commercial Banks</keyword>' (SCBs) gross <keyword id="6401657" type="General" weightage="20" keywordseo="non-performing-assets" source="Orion">non-performing assets</keyword> (<keyword id="19982350" type="General" weightage="20" keywordseo="GNPA" source="keywords">GNPA</keyword>) ratio fell to 2.8%, and the net non-performing assets (NNPA) ratio to 0.6% at the end of March 2024. "The asset quality of SCBs recorded sustained improvement, and their GNPA ratio moderated to a 12-year low in March 2024. Their NNPA ratio too improved to a record low," said the June FSR. Among bank groups, public sector banks (<keyword id="20012926" type="General" weightage="20" keywordseo="PSBs" source="keywords">PSBs</keyword>) recorded a substantial reduction (76 bps) in their GNPA ratio during H2 2023-24. While the GNPA stock decreased across all bank groups, active and deep provisioning by PSBs and foreign banks (FBs) resulted in an improved provisioning coverage ratio (PCR) in March 2024, the report said. The half-yearly slippage ratio (viz, new NPA accretions as a share of standard advances) decreased across bank groups. Though the amount of write-offs declined during the year, the write-off ratio remained almost at the same level a year ago due to a reduction in GNPA stock, the FSR said. Overall, it added the sustained reduction in the GNPA ratio since March 2020 has been primarily due to a persistent fall in new NPA accretions and increased write-offs. The RBI said macro stress tests are performed to assess the resilience of SCBs' balance sheets to unforeseen shocks emanating from the macroeconomic environment. These tests attempt to assess capital ratios over a one-year horizon under a baseline and two adverse (medium and severe) scenarios. "The GNPA ratio of all SCBs may improve to 2.5% by March 2025 under the baseline scenario," the report said. However, if the macroeconomic environment worsens to a severe stress scenario, the ratio may rise to 3.4%. Under the severe stress scenario, the GNPA ratios of PSBs may increase from 3.7% in March 2024 to 4.1% in March 2025, whereas it may go up from 1.8% to 2.8% for private sector banks and from 1.2% to 1.3% for FBs. The <keyword id="20089808" type="General" weightage="20" keywordseo="financial-stability" source="keywords">Financial Stability</keyword> Report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. The report further said deposit mobilisation by SCBs gathered pace during 2023-24, with a large portion of new accretions in the form of term deposits. "Interest rates became more attractive as banks stepped up efforts to mobilise funds to match the rapid rise in credit demand. Growth in current account and savings account (CASA) accelerated across all bank groups," the RBI said. According to the report, bank credit accelerated during H2 2023-24 among public sector banks (PSBs) and foreign banks (FBs), whereas it moderated in respect of private sector banks (PVBs). The share of credit to the services sector and personal loans in the aggregate loan portfolio increased. Personal loans accounted for over half of PVBs' <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword>. The expansion in personal loans was broad-based, led by housing loans and followed by other personal loans.

Banks' gross NPAs at 12-yr low, may fall further to 2.5%: RBI report

<ul class="summary-list"><li>Some baby boomers are gifting wealth early to help their children buy homes and build families.</li><li>Financial planners said boomers need to ensure their own personal financial stability first.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/boomers-not-waiting-pass-inheritance-wealth-transfer-millennials-need-it-2024-7">Baby boomers</a> are expected to pass down trillions of dollars of assets in the coming decades, but not all of them want to wait until after they die to do it.So, how do you know if you're in a position to be able to start passing down your wealth?Several boomers previously told Business Insider that they've been <a target="_blank" class="" href="https://www.businessinsider.com/boomer-dad-explains-why-gifts-genx-millennial-kids-early-inheritance-2024-7">gifting cash to their adult kids</a> well before they expect to die, as they believe the money is most useful now when they are building families and buying homes.Financial planners say it can be a good idea to <a target="_blank" class="" href="https://www.businessinsider.com/kansas-dad-gave-daughter-money-wedding-bought-home-down-payment-2024-6">pass down wealth</a> early if — and only if — you are in a financial position to be able to do it and still ensure your needs are met."I love parents that have these big hearts for their children, but they also have to be smart in making decisions for the children," Michelle Griffith, a senior wealth advisor at Citi Personal Wealth Management, told BI.Griffith said there are several reasons someone may want to transfer their wealth early. For the very wealthy, that may be to avoid a <a target="_blank" class="" href="https://www.businessinsider.com/estate-tax-homes-real-estate-wealthy-trusts-2023-5">large estate tax</a>. But even <a target="_blank" class="" href="https://www.businessinsider.com/millionaire-age-millennials-inheriting-wealth-older-boomers-living-longer-2024-6">average baby boomers</a>, who have a net worth of around $1 million, are getting in on early wealth transfers."They want to share, and they want to witness wealth transfer while they're alive and healthy," she said, adding that the main reason her clients want to share their wealth with their kids is "just because it makes them happy."Griffith said <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/financial-plan">financial planning</a> is especially important for parents who are thinking about sharing their wealth. In part, that's because many parents have a hard time saying "no" if their child needs help, so it's best to work gifting into your financial plan from the start.<h2 id="2f0d9dca-58ef-47e4-9e1b-337bcfcd9dff">Do your finances pass a 'stress test'?</h2>Griffith said the first thing someone should do before transferring wealth is to look at their retirement resources and do something she calls a "stress test.""A stress test is taking a look at the portfolio and modeling it in volatile markets, looking at the impact and actually the end results of their normal distribution to meet their needs," she said. "Then adding in what I consider to be a goal distribution, something that is not paramount to living, but something that they really, really want to do."That includes considering what the portfolio might look like when the markets are most volatile and declining."If the portfolio can survive that and you still see that there are positive results at end of life, well now we can start to model in some type of a reasonable schedule to share some of the wealth," she said.With this strategy, Griffith said a parent can back into the number that they feel they are able to give to their kids. Although a parent might want to do the full tax-free gift amount ($18,000 for one person in 2024, $36,000 for a couple), that might not be the right amount based on the resources they have when accounting for potential downturns."Stress testing the portfolio is a way for them to make an informed decision," she said, "not just with the heart, but also using the head so that they're also smart with it."Griffith said a wealth advisor can help complete a stress test using specific software that looks at various simulations of what could happen to a person's finances. For baby boomers who have a relationship with Citi and are in the <a target="_blank" class="" href="https://fortune.com/recommends/investing/baby-boomers-average-net-worth/">average net worth range</a> for their generation, around $970,000 to $1.2 million in 2019, she said financial planning is provided without extra cost.One thing Griffith emphasized that is key for people to think about before gifting their wealth is end-of-life care. <a target="_blank" class="" href="https://www.businessinsider.com/nursing-home-private-room-monthly-median-price-by-state-2019-3">Nursing homes and assisted living facilities</a> can easily cost $100,000 per year. As people are living longer than ever, some baby boomers could find themselves living in a care facility for not just for three or four years but up to a decade or more."That is one way to really start to deplete a portfolio," she said, adding that when stress testing, it's also important to model in what happens if someone's health declines and they need long-term care.Griffith said some of her favorite meetings with her clients are when someone comes in and says I want to gift this amount to my kids, or I want to help my kid make this large purchase."They're excited to do it and so am I to be able to help," she said. "But again, we want to make sure that it's a smart choice, it's an affordable choice, and not just in the time period that they're asking. You got to look beyond that as well."Have a news tip or a story to share about passing down wealth? Contact this reporter at <a target="_blank" href="mailto:kvlamis@businessinsider.com">kvlamis@businessinsider.com</a>.

Boomers who want to transfer wealth to their adult kids should make sure their finances can pass a stress test

Mutual funds stress test: What it means for you

<ul class="summary-list"><li>Three people who've earned $100,000 annually said it reduced stress but wasn't life-changing.</li><li>Higher incomes allowed them to focus on personal growth, relationships, and financial security.</li></ul>When Joshua first <a target="_blank" href="https://www.businessinsider.com/americans-salary-describe-jobs-keywords-annoying-preply-2023-10">earned a $100,000</a> salary about five years ago, it didn't impact his lifestyle much."I wasn't able to splurge or to afford luxurious things," the 30-year-old fintech professional, who's based in Georgia, told Business Insider via email.But increasing his income to that level did do one important thing: It helped him <a target="_blank" href="https://www.businessinsider.com/personal-finance/strategies-cope-with-financial-anxiety-2021-11">worry much less</a> about his finances. Joshua said the boost to his financial security also made his relationships with his friends and family more comfortable."There was no longer the strain of borrowing and paying back money, no longer going out to eat to get a quick meal and being anxious about if I could foot the bill," he said.A $100,000-a-year salary doesn't go as far as it used to in an economy where the <a target="_blank" href="https://www.businessinsider.com/raise-keep-up-with-inflation-7-percent-pay-cut-2022-12">rising costs</a> of <a target="_blank" href="https://www.businessinsider.com/americans-consumers-costs-gardening-hunting-fight-rising-food-prices-2024-2">food</a>, <a target="_blank" href="https://www.businessinsider.com/average-us-home-price-median-fed-mortgage-rates-inflation-pulte-2024-4">housing</a>, <a target="_blank" href="https://markets.businessinsider.com/news/stocks/car-ownership-is-more-expensive-than-ever-1032923808">cars</a>, <a target="_blank" href="https://www.businessinsider.com/news-today-january-8-hidden-cost-of-children-2024-1">childcare</a>, and other expenses are weighing on people's finances. Last year, Americans said they'd need to earn $233,000 a year to <a target="_blank" href="https://www.businessinsider.com/how-much-money-salary-americans-need-to-feel-rich-2023-7">feel financially secure</a> and $483,000 to feel rich, according to a Bankrate survey conducted in June 2023. What's more, a survey conducted by the New York Fed in March found that the <a target="_blank" href="https://www.businessinsider.com/100k-salary-jobs-hard-find-americans-with-college-degrees-2024-5">average reservation wage</a> for Americans with a college degree — the lowest annual wage they'd be willing to accept for a new job — rose to a high of about $99,000.However, for many Americans, reaching a six-figure income could still have a significant impact on their finances and well-being. As of March, the average annual salary for full-time workers was about <a target="_blank" href="https://www.newyorkfed.org/microeconomics/sce/labor#/experiences-earnings1">$84,000</a>, according to a New York Fed survey.Business Insider asked three people who've made over $100,000 a year how becoming a six-figure-earner did — and didn't — change their lives and relationships. While it didn't make them feel rich, they said it reduced their financial-related stress by several notches. BI has verified their earnings.<h2 id="2bf8ab4e-03cd-46be-b9c2-ba3ae2c3ddda">Having money allows you to focus more on other things you care about</h2>Cole H. Mattes made his first $100,000 in 2020 by selling thermometers on eBay, he told Business Insider via email. Last year, the 24-year-old entrepreneur, who's based in California, took home $250,000 as the owner and founder of the public relations agency Monarch Media.Mattes said that making six figures "isn't really all that life-changing" but that the extra income has had two big benefits.First, it's allowed him to worry much less about his finances and concentrate on other areas of his life."You start to focus on things that really matter, like traveling, dating, and cultivating important relationships," he said. "Once you no longer have to focus on hustling to pay for rent and other basic necessities, because you are no longer financially burdened, that is when life really starts because you can focus on the amazing things life has to offer."Second, he said having money has opened doors for him in the business world."Successful people do business with other successful people," he said. "Money provides status, and that is the real value you get by becoming rich — not a new pair of jeans."However, Mattes said that making more money can sometimes negatively impact relationships."When you become successful, you will lose friends and family who become jealous of your income," Mattes said. "Losing people might be hard, but it should really be looked at positively because those types of people don't want the best for you."To be sure, while a $100,000 salary wouldn't be enough to put a person in the <a target="_blank" href="https://www.businessinsider.com/salary-needed-to-be-top-earner-us-states-ranking-2023-1">top 1% of their state's earners</a>, it could be the difference between a financially vulnerable lifestyle and a secure one.At least 32% of the population of every US state qualifies as an <a target="_blank" href="https://www.businessinsider.com/meet-the-typical-alice-middle-class-poverty-housing-food-benefits-2024-4">ALICE</a> — asset limited, income constrained, employed — according to data from the nonprofit organization United Way. ALICEs are Americans who are struggling to pay the bills but make too much money to qualify for government assistance like food stamps.For many of these people, a $100,000 salary could, in fact, be life-changing.<h2 id="ab0c97e7-54c5-4dce-b50b-7c561c13e1ed">It can take years for the impacts of a six-figure income to be fully felt</h2>For Maksim Sonin, crossing the six-figure threshold didn't feel particularly impactful because his income had grown steadily over time, he told Business Insider via email.However, as Sonin's income rose well into the six-figures working in the oil and gas industry abroad, he said the benefits of his higher income have become more noticeable. He said it's allowed him to help pay for his brother's education, strengthen his finances, and enroll in graduate school — he's currently pursuing a master's degree at Stanford University.While he's grateful for the perks and financial security that a higher income has provided, he said he wants to ensure that his children remain humble."They don't care much, nor are they even aware of how much money I began to earn after that pivotal $100,000 mark," he said.Staying humble is something Joshua has focused on as well. Given he didn't grow up around a lot of money, he said learning how to wisely use his extra income has been a work in progress. While he's increased his discretionary spending a bit, he said he's put a lot of his extra income toward investments and side hustles.Joshua, who made about $150,000 in 2023, said reaching six figures several years ago was a significant milestone, but that it took time for the benefits of his higher income to be fully realized."It was the consistency of earning over $100,000 that positioned me to be financially secure," he said.Are you making over $100,000 a year? Are you willing to share your story and the impact this income has had on your life? If so, contact this reporter at <a target="_blank" href="mailto:jzinkula@businessinsider.com">jzinkula@businessinsider.com</a>.

Making $100,000 a year might not be life-changing anymore, but 3 people share how it makes things a lot less stressful

<ul><li><keyword id="6359111" type="General" weightage="80" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> said that the recent measures to tighten <keyword id="19528809" type="General" weightage="20" keywordseo="personal-loan-norms" source="Orion">personal loan norms</keyword> are pre-emptive, calibrated and targeted.</li><li>The governor is of the view that banks and NBFCs are increasingly relying on high-cost short term bulk deposits, while the tenure of the loans is getting elongated.</li><li>Lenders must not rely solely on pre-set algorithms while lending through analytics, the regulator said. </li></ul>The governor of <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (RBI) Shatikanta Das said on Wednesday that the recent measures taken to tighten personal loan norms were pre-emptive, calibrated and targeted. Speaking at an event in Mumbai, Das also suggested banks, shadow banks and other financial entities stress test their books. “In fact, there is a strong case for companies in the real sector also to stress test their businesses and balance sheets,” said Das. Last week, RBI increased the <a href="https://www.businessinsider.in/finance/news/rbi-tightens-norms-on-personal-loans-for-banks-nbfcs/articleshow/105269235.cms">risk weightage for unsecured loans </a>given out by banks and non-banking financial institutions (NBFCs). But education, auto, housing and MSME loans were left out of the new norms. Real estate companies have been on an expansion spree, after the sector was re-energized since the pandemic. ‘Avoid all forms of exuberance’ The governor who was speaking at the FIBAC conference also had a few suggestions for banks and NBFCs who are enjoying the phase of high credit growth. Credit expansion and its pricing should be in sync with risks, and all forms of exuberance must be avoided, he advised. He also said that banks and shadow banks must strengthen their asset liability management and give greater attention to their liabilities side. “In certain cases, we have observed increased reliance on high cost short term bulk deposits while the tenure of the loans, both in retail and corporate loans, is getting elongated,” Das said. Das also pointed out that certain NBFCs-MFIs appear to be enjoying relatively higher net interest margins. “It is indeed for micro finance lenders to ensure that the flexibility provided to them in setting interest rates is used judiciously. They are expected to ensure that interest rates are transparent and not usurious,” he said. Banks too were warned of their exposure to NBFCs, who regularly borrow from banks. “Though the banks are well capitalised, they must constantly evaluate their exposure to NBFCs and the exposure of individual NBFCs to multiple banks. The NBFCs on their part should focus on broad basing their funding sources and reducing overdependence on bank funding,” he added. ‘Re-test your analytics, algorithms’ Lending institutions have been adopting digitalization at a rapid pace. They have not only eased access, increased reach of banking services but also helped institutions bring down operational costs. Here too, Das sounded a word of caution, especially with regards to model-based lending through analytics. They must not rely solely on pre-set algorithms as assumptions based on which the models operate, he observed and suggested they’re calibrated from time to time with fresh information. “It is necessary to be watchful of any undue risk build up in the system due to information gaps in these models, which may cause dilution of underwriting standards,” Das said. SEE ALSO <a href="https://www.businessinsider.in/personal-finance/news/the-dark-truth-behind-rbis-crackdown-on-easy-personal-loans/articleshow/105287366.cms">The dark truth behind RBI’s crackdown on easy personal loans</a> <a href="https://www.businessinsider.in/finance/news/rbi-tightens-norms-on-personal-loans-for-banks-nbfcs/articleshow/105269235.cms">RBI tightens norms on personal loans for banks, NBFCs</a>

RBI governor asks realty companies to stress test their books

<ul class="summary-list"><li>Charlotte Chaze is a 33-year-old former data analyst and researcher. </li><li>Landing a tech job in a non-tech company allowed her to achieve her dream life, with a high salary, flexibility, and stability. </li></ul>When I was 28, I realized my career wasn't worth it.I was making $28,000 a year and working 50- to 60-hour weeks as a researcher in academia. <a target="_blank" href="https://www.businessinsider.com/left-academia-six-figure-career-at-climate-tech-startups-2022-9">Horrifically low salaries are normalized</a> in the industry, so I subconsciously believed I didn't deserve to make more. I felt guilty when I first realized I wanted more money and real work-life balance.One day, I had an epiphany. I realized getting my boss' job was the best possible trajectory for my career. But he was working considerably more hours than me and wasn't making what I'd consider fair pay. I didn't want that. I wanted to make enough money to go from surviving to thriving.<h2 id="ea541aa3-fbd9-464f-b45e-80986af0749e">Landing a data analyst job helped me achieve the life I had dreamed of</h2>I started looking at job boards and saw a ton of <a target="_blank" href="https://www.businessinsider.com/how-to-increase-salary-career-change-data-analytics-free-youtube-2023-5">data analyst positions</a>, with an average starting salary of around $70,000, in 2018. I used free websites to teach myself data analytics, and then I started applying for jobs in Philadelphia because I wanted to leave Delaware, where I'd been living for two years.Within a couple of months, I landed an analytics associate position at a consulting firm in Philadelphia and moved there.Suddenly I was bringing in a $70,000 salary — over twice what I was making before — which brought on an overwhelmingly positive lifestyle change. I could afford to live in the city, buy whatever I wanted (within reason), and finally start <a target="_blank" href="https://www.businessinsider.com/personal-finance/how-to-save-money">saving money for my future</a>.<h2 id="bd9035d6-6718-4376-a5ce-d68ac5d96532">My salary increased to $158,000 over the course of four years</h2>While my pay had increased, <a target="_blank" href="https://www.businessinsider.com/mckinsey-consultant-quit-mental-health-shattered-2024-4">my hours were still crazy</a> because I was at a consulting firm. I realized that most of us aren't saving the world at our jobs — we're just helping our corporate overlords make more money — so there was no reason to dedicate that many hours to work.After a few months, I started applying to other data analyst positions, specifically looking for positions at typical corporations instead of at consulting firms.I landed a $90,000 senior analyst job at Comcast. I immediately saw a drastic change in my hours; I was working only 35 to 40 hours a week, and I didn't have to have a single thought about work all weekend.<div type="image" title="A dog on a leash overlooks a view of the Catskills" height="3072" width="4096" msid="110300806" hostid="261" sizebytes="1758276"></div>With the extra time, I started <a target="_blank" href="https://www.businessinsider.com/boomer-seeing-the-world-never-too-late-to-travel-2024-3">traveling more</a>. I squeezed in quick weekend trips to take my dog on really cool hikes and brought my little sister to Disney World for the first time. I was finally able to start going out to restaurants and exploring the city, which enabled me to <a target="_blank" href="https://www.businessinsider.com/how-to-make-friends-as-adult-moving-cities-nyc-la-2023-9">start making local friends</a>.<div type="image" title="Charlotte Chaze and her two sisters smile at the camera while at Disney World." height="2448" width="3264" msid="110300807" hostid="261" sizebytes="456038"></div>Within two years, I got a promotion that bumped my salary to $104,000. I was able to buy a nice car and then <a target="_blank" href="https://www.businessinsider.com/personal-finance/how-to-buy-a-house-step-by-step-guide">my own home at age 30</a>.Just when I thought things couldn't get any better, I landed a job as senior manager of advanced analytics at AT&amp;T making a base salary of $158,000.Making the shift into a tech role helped me achieve a life I'd only dreamed of.<div type="image" title="Charlotte Chaze wears a black winter coat as she smiles in front of a brick building" height="1440" width="1080" msid="110300809" hostid="261" sizebytes="264552"></div><h2 id="4e829201-1362-4f37-a8b0-dbe5f8184a31">I don't feel that working in Big Tech is worth it</h2>When people think about working a tech job, many think of Big Tech companies like <a target="_blank" href="https://www.businessinsider.com/laid-off-tesla-worker-story-after-relocating-2024-4">Tesla</a> and <a target="_blank" href="https://www.businessinsider.com/meta-median-yearly-pay-employee-2024-4">Meta</a>, which offer the highest salaries and have a certain air of prestige.In my opinion, working in Big Tech companies is not worth it because of the incredible downsides like <a target="_blank" href="https://www.businessinsider.com/layoffs-sweeping-us-these-are-companies-making-cuts-2024">mass layoffs</a> and <a target="_blank" href="https://www.businessinsider.com/tech-workers-sick-of-grind-search-low-stress-jobs-burnout-2023-5">long work hours</a>. Sure, these companies offer great perks like free meals, beer on tap, and gourmet coffee machines, but in my opinion, <a target="_blank" href="https://www.businessinsider.com/tech-workers-office-perks-ski-trips-massages-meals-list-2023-2">these perks are scams</a> — just a way to keep you working longer. Would you rather have a free dinner on campus because you worked until 8 p.m., or leave work at 5 p.m. and eat whatever you want?This is why I recommend that people search for tech jobs specifically at non-tech companies, such as Home Depot, Kroger, or whatever company owns the last store you walked into — they all hire tech roles.Non-tech companies give you the best of both worlds:<ul><li>High salaries: Although they might not be quite as high as Big Tech roles, the salaries at non-tech companies can be super competitive, especially if you focus on <a target="_blank" href="https://www.businessinsider.com/fortune-10-salaries-revealed-engineers-product-managers-2020-11">non-tech companies in the Fortune 500</a>.</li><li>More flexibility: Working at a Big Tech company means being in a <a target="_blank" href="https://www.businessinsider.com/quit-meta-tech-job-after-panic-attacks-anxiety-low-point-2023-10">fast-paced and competitive environment</a>, and that results in long hours. But when you work at a non-tech company, 35- to 40-hour weeks are normal and the workload is more conducive to real work-life balance.</li><li>Less competitive: The Googles of the world are <a target="_blank" href="https://www.businessinsider.com/google-jobs-careers-hiring">super competitive</a> because they pay the most and you get bragging rights; but even talented, hardworking people with years of experience have difficulty getting jobs there. When you apply for tech jobs at non-tech companies, you're not competing against people who are trying to be the best in the world.</li></ul><h2 id="ebe6dd42-3725-4345-972a-708003e4e9cf">Anyone can get into the tech industry</h2>Once I broke into tech, my life changed dramatically. So, in 2022, I left my job at AT&amp;T and started Break Into Tech, a small business that helps people get their first entry-level data analyst jobs — just like I did.<div type="image" title="Charlotte Chaze smiles at the camera and holds up a green passionfruit as she squats on a rock next to a river" height="4032" width="3024" msid="110300811" hostid="261" sizebytes="1276164"></div>There's a huge demand for data analysts, with big data analytics being the technology expected to drive the most job creation in the next five years, according to the World Economic Forum's <a target="_blank" href="https://www.weforum.org/publications/the-future-of-jobs-report-20">Future of Jobs Report 2023</a>. That's why the job pays so well, even in entry-level roles. And data analyst jobs exist at every big company in every industry.I advise anyone hoping to land their first data analyst job at a non-tech company to start looking at their current job as an asset and find where it overlaps with data analyst jobs.For example, healthcare experience gives you a leg up when you apply to healthcare analytics jobs because you're familiar with the data. Find where your <a target="_blank" href="https://www.businessinsider.com/first-tech-job-customer-service-skills-salary-journey-2024-2">current experience will give you an edge</a> and leverage that.Of course, it's essential to develop technical skills as well. Spend 20 minutes a day learning and practicing skills like SQL and Tableau online, and you'll be ready for an entry-level job in a few months. The imposter syndrome will dissipate when you get your job offer, and you'll be wondering why you didn't do this sooner.Charlotte Chaze is the founder of <a target="_blank" href="https://howtobreakintotech.com/">Break Into Tech</a>. She is an advocate for modern workers' rights and has helped thousands of people with no prior experience land their first data analytics jobs.If you landed a tech job without a technical background and would like to share your story, email Jane Zhang at <a target="_blank" href="mailto:janezhang@businessinsider.com">janezhang@businessinsider.com</a>.

I became a data analyst and grew my salary 5x without working in Big Tech. Non-tech companies offer more flexibility and less stress.

'Big Short' investor Michael Burry, Cathie Wood, and Paul Krugman aren't stressing about inflation. Here's why 5 elite market-watchers expect prices to rise slower or even fall.

<ul class="summary-list"><li>US Treasurys have long been the go-to asset when uncertainty, fear, and panic send investors looking for safety.</li><li>But that reputation has take major hits lately amid a historic bond sell-off and rising default fears.</li></ul>US Treasurys have long been the go-to asset when uncertainty, fear, and full-blown panic send investors looking for safety — but that reputation has take major hits lately.Financial markets have been engaged in a growing debate over the risks that lurk in Treasurys, with prominent voices raising doubts. On Friday, Moody's lowered the US credit outlook to "negative," signaling that a downgrade is possible in the future.That comes as massive deficits have sent debt soaring, while <a href="https://markets.businessinsider.com/news/bonds/treasury-bond-yields-market-selloff-market-crashes-dot-com-bubble-2023-10">the historic sell-off in US bonds</a>, triggered by the Federal Reserve's rate hikes, has highlighted that prices are vulnerable too. "You have people talking about bitcoin, about equity being the 'safe asset' because they've lost confidence in government bonds being the safe assets because of the nature of this interest-rate risk," <a href="https://www.youtube.com/watch?v=oz9qHZhLMbY" target="_blank" rel="noopener">economist Mohamed El-Erian told CNBC last month</a>.Meanwhile, Principal Asset's Seema Shah told CNBC in a separate <a href="https://www.youtube.com/watch?v=-wmXokXNq94" target="_blank" rel="noopener">interview</a> last month that "there's so many different forces which are buffeting the bond space that it's difficult to really say with great conviction that today Treasurys are your safe haven."In June, a <a href="https://www.dallasfed.org/research/economics/2023/0627" target="_blank" rel="noopener">Dallas Federal Reserve paper</a> said buyers view short-duration T-bills as the true safe haven, pointing out that net inflows in long-dated Treasurys fell during the 2008 crash and COVID pandemic."Long-term Treasury bonds may have no default risk, but they have liquidity risk and interest rate risk — when selling the bond prior to maturity, the sales price is sometimes uncertain, especially in times of financial market stress," it said.But default has emerged has another risk as well.In March, a <a href="https://www.rbadvisors.com/insights/is-the-safe-haven-still-safe/#:~:text=Treasury%20bonds%20have%20long%20been,haven%20relative%20to%20other%20assets" target="_blank" rel="noopener">Richard Bernstein Advisors note</a> said spreads on credit default swaps have climbed for Treasurys since since 2011, when the federal government was issued its first credit downgrade. This means that markets are paying more to insure against what was once unthinkable.Then came this spring's debt-ceiling drama and the US credit downgrade in August from Fitch, which cited the rising debt burden and political dysfunction.Moody's flagged similar issues in its warning. If a downgrade follows, then US debt wouldn't be in the safest category for default risk at any of the three major ratings agencies. Alarms about US debt have been growing as federal deficits continue to widen. A Penn Wharton Budget Model recently determined that the US has roughly 20 years to change course on the size of its debt, <a href="https://markets.businessinsider.com/news/bonds/us-debt-crisis-gdp-ratio-unsustainable-default-treasury-bond-crash-2023-10">or else a default of some form will be unavoidable</a>.As concerns over debt sustainability and bond prices mount, investors have turned more skittish too. Several auctions for <a href="https://markets.businessinsider.com/news/bonds/bond-yields-30-year-treasury-demand-auction-us-debt-2023-11">long-dated Treasurys have seen weak demand</a>, and <a href="https://markets.businessinsider.com/news/bonds/treasury-bond-market-demand-yields-us-debt-auction-borrowing-forecast-2023-11">buyers are demanding higher compensation</a> for the risk of carrying Treasurys.But TD Securities analyst Gennadiy Goldberg isn't convinced that Treasurys are slipping as a safe haven."Nobody worries about the long-term sustainability of the fire department when there's a fire, right?" he told Insider. "They call the fire department, and the fire department is US Treasurys."In his view, investors have been willing to remain in riskier assets as growth in the US has remained robust. But if a risk-off environment hits markets and really takes off, then that's a very different ball game."And I would be shocked if there wasn't a safe-haven flight into Treasurys," he added.

You Searched For "stressed assets" and got 12 results

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