In the latest installment of our monthly financial services update, we take a look at banking results from the fourth quarter of 2022, artificial intelligence-powered funds, and two regulatory proposals. … READ MORE >
4 areas of focus for financial institutions in early 2023
Despite the lift in financial institutions’ net interest margins from unprecedented rate hikes, the headwinds facing the industry through declining macroeconomic conditions are creating unique downside risks for the nation’s banking system.
Still, the strong capital positions of the nation’s banks have positioned them to weather such headwinds if they prioritize accordingly. Here are four areas to pay attention to as the year progresses. … READ MORE >
Financial services update: NIM growth, fintech recap, nonbank financial institution oversight
In the first installment of our monthly financial services update, we take a look at how financial institutions can sustain net interest margin growth, how fintech finished out 2022 and a rule proposed by the Consumer Financial Protection Bureau to create a registry of nonbank financial institutions. … READ MORE >
Workforce, population shifts are major hurdles for banks: Spring 2022 outlook
While operational hurdles and economic uncertainty remain top issues for financial institutions moving into a new year, their biggest long-term challenges won’t be low interest rates or inflation. Rather, a transforming workforce and the long-term slowing in population growth are likely the greatest threats. … READ MORE >
Executive order targeting banking M&A expected to bring more scrutiny
The order is a significant development given that the number of deal announcements continues to gain steam heading into the second half of the year. … READ MORE >
CHART OF THE DAY: U.S. household net worth surges, but the gains are uneven
The net worth of U.S. households in the first quarter increased by nearly $5 trillion, or 3.8%, from the previous quarter to a record of $136.9 trillion. On an annual basis, that gain was $25.5 trillion, or 22.9%. But not all households benefited equally. … READ MORE >
5 key themes from SEC Chair Gary Gensler’s House testimony
With Gary Gensler sworn in as the chair of the Securities and Exchange Commission in April, the direction of the agency under his leadership is now beginning to take shape. This was especially clear during a House Financial Services Committee hearing Thursday on the unprecedented surge in social media induced meme stock trading this year. … READ MORE >
Federal Reserve to end supplemental leverage ratio capital break
The Federal Reserve announced on Friday that it would not extend an important rule accommodation put in place last spring that helped banks continue to lend to small and medium-size businesses as the economic effects of the pandemic took hold. … READ MORE >
CHART OF THE DAY: Deflating the hype on inflation
While we do expect the year-ago effects brought on by the global pandemic to result in a period of moderate reflation in the economy, the longer-term outlook implies that elevated inflation will be transitory and give way to price stability. … READ MORE >
Short-term rates and economic expansion at risk without Fed’s SLR extension
With the economic recovery still in its early stages, an important component of the Federal Reserve’s response to the economic collapse last spring is in danger of expiring. … READ MORE >