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]
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]
Acting Comptroller of the Currency Michael Hsu called on community bankers to start researching the impacts of climate change as regulators address the climate change policies of larger financial institutions. [Continue]
If your bank wants to stay independent, you must plan and act like it’s going to be around in 100 years, consultant and lawyer Phillip Smith. [Continue]
Customer experience determines your place in the competitive landscape and that experience at community banks is largely determined by staff, Emily Sayer told attendees at the annual convention of the Independent Community Bankers of America. [Continue]
Bankers’ ability to successfully adapt to post-pandemic life will require a complete reframing of how they approach their business models, said futurist Mike Walsh. [Continue]
Federal Reserve Board Governor Miki Bowman told bankers gathered at the ABA Conference for Community Bankers on Monday that taming inflation is the Fed’s top monetary policy priority. [Continue]
Leaders from 14 core providers asserted their dedication to community banking at the ABA’s National Conference for Community Bankers. [Continue]
The evolution of the banking industry accelerated during the pandemic and bankers need to be prepared to keep up if they wish to be successful. [Continue]
Rising interest rates will slow inflation, but it will reduce spending and “it could cause asset quality problems we don’t currently have,” said Curtis Carpenter of the Hovde Group in a presentation Sunday, the first day of the Acquire or Be Acquired conference in Phoenix. Bank earnings are also likely to suffer as expected higher corporate taxes take hold. [Continue]