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n. Illinois | yes, Lots of guesstimate work goes into a credit rating on a specific credit but I do not see the freight train slowing down there are already regional banks that are putting disclosures in their SEC reports to show the effect of mark to market on their loan portfolio (the details of how they get there is not known) but given how much larger a loan portfolio is than the bond portfolio it won't take much of a discount to wipe out the new worth of any bank. We all have that sub 3% deal but on in 2020 to the very best of the very best type customer that we are still booking it at 100% of the face value because there is zero credit risk but think of the discount we would have to take to reflect the current interest rate environment in the mid 7's to low 8's. the paper equity disappears pretty quick Bank Managers will be forced to adapt and if they continue to allow banks to hold Govt securities without any charge to capital its only going to get worse.
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State of Ag Banking
