U.S. commercial banks and savings associations had $18.4 billion in cumulative trading revenue in the third quarter of this year – $1.8 billion (10.9%) more than the previous quarter and $2.1 billion (12.7%) more than a year ago, the national bank regulator said Friday.
The Office of the Comptroller of the Currency (OCC) said a total of 1,221 insured U.S. national and state banks and savings associations held derivatives in the third quarter, and 86.3% of the total banking industry notional amount of derivatives was held by four large banks. Those four banks and had 74.2% of industry net current credit exposure (NCCE), the OCC reported.
The OCC report also shows that in the third quarter:
- Initial credit exposure from derivatives before netting decreased from the second quarter. NCCE decreased $15.8 billion, or 5.9%, to $252.0 billion.
- Derivative notional amounts increased by $8.3 trillion, or 3.7%, to $231.8 trillion.
- Derivative contracts remained concentrated in interest rate products, which totaled $154.5 trillion, or 66.7% of total derivative notional amounts.
Leave a Reply