July 23rd, 2025 | 07:00 CEST
Banking crash ahead? Consultant warns of credit crunch! Bank of America, Deutsche Bank, Sranan Gold
Stress test success does not guarantee safety. Banks in the US are currently scoring well with good quarterly figures, and stress tests, which used to be a hurdle, have long since lost their terror. However, Yerbol Orynbayev, former Deputy Prime Minister of Kazakhstan, warns that if the regulation of large banks is scaled back in the wake of the stress tests passed in June and the positive quarterly figures, this could weaken regional banks and ultimately trigger a credit crunch. Orynbayev works as a consultant in the financial sector and has been living in the US since 2017.
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
BANK AMERICA DL 0_01 | US0605051046 , DEUTSCHE BANK AG NA O.N. | DE0005140008 , SRANAN GOLD CORP | CA85238C1086
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"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Study sees commercial real estate as a risk factor
Orynbayev is thus bucking a trend that parts of the US Treasury Department have euphemistically described as "regulatory modernization". According to this approach, capital requirements for banks should be lowered so that they can grant more loans. In fact, the term means deregulation. Whether banks would actually use their additional capital for loans or for abstract investment banking transactions remains open. There are good reasons to leave the regulatory framework as it is: An analysis by Florida Atlantic University shows that 59 of the 158 largest banks in the US are exposed to more than 300% of their equity capital in the commercial real estate market. The role of shadow banks, which can accumulate significant risks with little regulation, is also considered problematic and is repeatedly addressed by the Basel Committee and the International Monetary Fund (IMF).
Bank of America: Downside risks despite good figures
However, current media reports paint a completely different picture. One day before Deutsche Bank presents its quarterly figures in Frankfurt, the financial pages are dominated by good results from the US. Bank of America has reported solid financial results for the second quarter of 2025. Earnings per share were USD 0.89, exceeding the consensus estimate of 86 cents. Net interest income reached a record high of USD 14.8 billion, and proprietary trading is also experiencing strong growth, increasing by 15% year-over-year. Although analysts, such as HSBC, have raised their rating for Bank of America shares, critical voices are also growing.
Saul Martinez of JPMorgan Chase even used the term "downside risks" in reference to the US banking sector. His reasons include ongoing macroeconomic uncertainty, a potential slowdown in economic growth, and possible interest rate cuts. Another warning sign is that Berkshire Hathaway, Warren Buffett's investment company, has reduced its stake in Bank of America in recent months.
What do Deutsche Bank's figures show?
Even though Deutsche Bank's figures are not expected until July 24, the picture is similar: The market expects growth, but is also looking at weaknesses, such as in asset management and costs. Parallel to the expectation of good quarterly figures from banks, the major central banks remain cautious and do not want to tighten regulations – the potential conflict with the US government could also weigh on share prices.
Gold as a crisis currency – Sranan Gold as an exciting alternative
Whenever things get turbulent at banks, gold benefits. Over the past three years, gold has achieved an average annual return of around 23%, while the S&P 500 achieved "only" around 15% per annum over the same period. This development highlights that gold can serve as an alternative asset class during specific market phases. Research findings show that this was particularly the case after special events such as September 11, 2001, or the Lehman bankruptcy. *In the wake of gold, shares in gold companies can also perform well. Smaller companies such as Sranan Gold offer additional sources of return. When gold prospectors develop promising projects, the market values these projects at a discount – after all, actual gold production is still a long way off. However, the more likely production or a lucrative sale to a larger company becomes, the more realistically the market estimates the value of the deposits. Especially during periods of positive market sentiment for gold, gold stocks can generate significant excess returns.**
Sranan Gold: Bottoming out ahead of drill results
Sranan Gold is primarily focused on the Tapanahony Project, which covers 29,000 hectares and is located in Suriname in an area known for its historic small-scale mining. Sranan Gold leverages the findings of local gold prospectors and explores the properties using modern methods. A 10.000-meter drilling program is planned for the coming months and is currently being prepared. If the company manages to deliver good drilling results, this could lead to a revaluation of the stock. The Company is currently valued at EUR 9.3 million, which is around a quarter less than six months ago. The positive share price performance over the past week signals a certain level of investor anticipation ahead of the upcoming exploration results.
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