Thursday - December 25, 2025
New York Fed: 'How Do Banks Build Equity Capital?'
December 23, 2025
NEW YORK, Dec. 23 (TNSLrpt) -- The Federal Reserve Bank of New York issued the following staff report (No. 1174) in December 2025 by Lily Gordon and Beverly Hirtle entitled "How Do Banks Build Equity Capital?"

Here are excerpts:

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We examine the evolution of equity capital in the U.S. banking industry over the past thirty-five years. Earnings are the major driver of increases in equity capital in the banking industry. While common stock issuan . . .

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