The reduction in occupied commercial real estate space caused by a mass shift to remote work poses credit risks for banks, FDIC Chair Martin Gruenberg said in a March 7 speech during an Institute of International Bankers conference. The national average vacancy rate increased to 12.5 percent by the end of last year from 9.6 percent in March 2020. [Continue]
Federal Reserve Bank of St. Louis President and CEO James Bullard predicted the Federal Reserve Open Market Committee will raise interest rates to over 5 percent this year to ensure that inflation returns to its long-term 2 percent target. Bullard discussed the Fed’s approach to taming inflation and outlined his economic predictions for the coming year. [Continue]
The trend of fintech investor groups purchasing small banks is a “game-changer” for the financial industry, said Curtis Carpenter, Hovde Group Senior Managing Director, Oct. 3 during the Bank Holding Company Association’s annual fall seminar in Bloomington, Minn. [Continue]
Advocates who follow lending issues are divided about the likely impact of the proposed revisions to the Community Reinvestment Act. Some who see its potential to expand credit to currently underserved groups are calling the proposal an opportunity of a lifetime; others, who say the proposal fails to promote racial equity, characterize it as a missed opportunity. The current reform proposal, which is soliciting public comments until August 5, will look more closely at the income of borrowers, consider small business lending with a special focus on loans to very small businesses, compare exam findings with so-called “section 1071” data collected by the Consumer Financial Protection Bureau, and take steps to increase credit availability to areas currently considered credit deserts. [Continue]
Three longtime leaders of family-held banks discussed the approaches they take to their positions and how they plan to keep their banks running in a panel at the Bank Holding Company Association’s Spring Seminar at Omni Viking Lakes Hotel in Eagan, Minn. [Continue]
Focus on climate risk by the Office of the Comptroller of the Currency is all about safety and soundness, Acting Comptroller Michael J. Hsu said. [Continue]
Banks should be aware of the latest fraud trends, training and encouraging their employees to adopt “a see something, say something” approach to preventing fraud, said Fredrikson & Byron Senior Associate Caitlin Houlton Kuntz. [Continue]
Banks should only explore entering the crypto market after properly understanding the industry’s risks and undertaking necessary due diligence, according to a presentation from Wipfli LLP Principal Marcie Bomberg-Montoya and NYDIG Relationships Manager Tammy Bangs during the Spring Seminar of the Bank Holding Company Association. [Continue]
Banks and their business customers can still benefit from using the Employee Retention Credit, an industry expert said. [Continue]
Community banks must broaden their strategic planning beyond growing loans and deposits to ensure long-term survival, said a pair of CLA principals. [Continue]