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• 12/31/2020

There is more competition than ever in the provision of banking services, and financial technology (fintech) developments have turbocharged this trend. Traditional commercial banks, thrifts and credit unions are vying with fintech firms and other enterprises for customers or are pairing up with these new competitors to widen offerings, improve speed of service and take advantage of new technologies. Some of these nontraditional providers are specializing in one product or service, or are targeting a very narrow customer base. A number of them are obtaining bank charters, while others are seeking alternative charters.

• 12/1/2020

Proud. Overwhelmed. Frustrated.

These sentiments and others expressed by bankers come from the 2020 National Survey of Community Banks, conducted annually by the Conference of State Bank Supervisors (CSBS) and state banking regulators for the past seven years. The survey is released each year during the annual Community Banking in the 21st Century research and policy conference; the event is sponsored by the Federal Reserve, the CSBS and the Federal Deposit Insurance Corporation. In this year’s survey, the effects of COVID-19 dominated and colored typical industry concerns related to regulatory burden, small business lending, industry consolidation, competition and technological innovation.

• 10/1/2020

The recession that has accompanied the coronavirus pandemic has hit most sectors of the U.S. economy hard, and commercial banks are no exception. Through the first half of 2020, profits sharply declined from their year-ago levels as banks worked with loan customers through deferrals and modifications, new loan demand fell, and banks set aside more funds for anticipated losses.

Those trends were true of both community banks and their larger counterparts to varying degrees within the District and nationally.

• 8/10/2020

The last several months have been challenging ones for all of us, both personally and professionally. We’ve all had to adjust, especially when it comes to getting essential work done. For the Federal Reserve and other bank regulators, the challenge has been to maintain close oversight of our financial institutions and to assist banks as they work to keep credit flowing to their customers. It’s been a delicate balancing act, but one that appears to be working well thus far.

• 1/30/2020

Since the end of the financial crisis more than a decade ago, lawmakers and regulators have worked to balance the needs of a growing, vibrant financial services sector with the regulations necessary to ensure a safe and sound one. In some ways, much has been achieved. The nation’s largest banking organizations are now subject to substantially higher capital and liquidity requirements. They are also regularly “stress tested” to understand the effects on capital should economic conditions deteriorate significantly.

At the same time, efforts are continuing to alleviate the regulatory burden faced by smaller banking organizations. Beginning this year, those that meet certain qualifications can opt into a simplified regulatory capital framework. The framework—dubbed the community bank leverage ratio (CBLR)—went into effect Jan. 1. The Federal Deposit Insurance Corp. estimates that more than three-quarters of all community banks will qualify to opt in.