- + Here is The Math Behind the High-Yield Account—There have been many a banker who has said they want to offer a high-yield account because the “higher interest expense is just like paying mark...
- + Why Commercial Loan Prepayment Speeds Matter—The biggest surprise for bank managers using risk-adjusted return on capital (RAROC) loan pricing models is the low return on equity (ROE) on smaller,...
- + 9 Steps to Kill Checks and Check Processing—Sometime soon, one of the banks reading this will likely be the last bank to handle paper checks. Last week’s announcement that Target, one of...
- + Community Bank Loan Performance Analysis—We conducted a loan performance analysis for over 5,000 individual hedged commercial loans originated by almost 400 community and regional banks acros...
- + Here Is a Comparison of 6 Bank Pricing Strategies—Unfortunately, bank product pricing is essentially an afterthought in our industry. Few bankers study bank pricing, and few apply quantitative rigor t...
- + Here is the Cost and Risk of Lending Optionality—Optionality is defined as a state in which choice or discretion is allowed. In finance, optionality is an asset (has value) for the person who an exer...
- + How to Build Better Deposit Performance – Size and Beta—Because of the option to add or remove deposit balances over time, deposit management is one of the more complicated endeavors in banking. Lending, by...
- + Bank Product Management in Lending—In a previous article [ here ] we discussed why community banks need product managers to ensure that financial products and services are effectively d...
- + Why You Need Bank Product Management—Banks don’t have enough product managers. A bank has a leader for a business line but usually only caretakers for products. A manager may overse...
- + Overcoming Interest Rate Challenges in Banking—Deposit costs and liquidity remain a challenge for some community banks as competition for core funding remains intense. The graph below compares the...
- + Here is Our Digital Banking Platform Playbook—You might need a new digital banking platform. Chances are your bank chose your current digital platform because it was easy. Maybe your core vendor p...
- + Here is Our Digital Banking Playbook—You might need a new digital banking platform. Chances are your bank chose your current digital platform because it was easy. Maybe your core vendor p...
- + Here is our Digital Banking Playbook—You might need a new digital banking platform. Chances are your bank chose your current digital platform because it was easy. Maybe your core vendor p...
- + Statistical Evidence on What Hurts Bank ROE—FDIC-insured “Problem Banks” list has been increasing over the past two years. For the community banking industry (banks under $10B in assets), this ...
- + S&P Global’s CBC Annual Banking Conference – Here are the Key Insights—S&P Global’s annual Community Banking Conference (CBC) should be on every executive banker’s agenda. This banking conference is designed to ...
- + Here is the Future of Bank ROE and What to Do About It—The average return on equity (ROE) for the banking industry declined to 11.10% in Q1/24 (a 23 percent decline in the last year). For banks under $10B ...
- + ERC for Banks – Told You Are Not Eligible? Find Out—In discussing ERC (Employee Retention Credit) with banks over the last year, we discovered a common theme. Most banks have either been told they are n...
- + Get This Fixed vs. Floating Loan Calculator to Help Borrowers—Most borrowers are implicitly expressing a view that interest rates will be lower in the future than the current market expectation. This view is refl...
- + Office Lending – Here is Why It is Not as Bad as The Market Thinks—Between now and the end of 2027, it is estimated that $2.2T of office loans is coming due. Much of this product lies on banks’ balance sheets. A high ...
- + Reduce Credit Spreads to Increase Return—In last week’s article ( here ), we discussed why category and geographic diversification may be unfeasible for many community banks. We concluded th...
- + Why Diversification Fails at Banks—Bankers have been taught to diversify their loan portfolio to reduce idiosyncratic (individual borrower) risk and to stabilize earnings. The thinking ...
- + 10 Lessons We Learned at the Nacha Smarter Faster Payment Conference—Last week, Nacha held its Smarter Faster Payments Conference in Miami, a significant event for over 1,800 bankers and vendors. With 142 presentations ...
As of 7/26/24 11:55pm. Last new 7/25/24 1:17am. Score: 692
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