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. Q4 banking results The bank failures of early March have changed the landscape for financial ... 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 ... 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 ... READ MORE >
Workforce, population shifts are major hurdles for banks: Spring 2022 outlook
At a glance A transforming workforce and the long-term slowing in population growth are likely the greatest threats to many banking organizations. These shifts can have a long-lasting impact on financial institutions that do not act now. Enhancements to current working conditions, company ... READ MORE >
Executive order targeting banking M&A expected to bring more scrutiny
An executive order signed by President Biden in early July is expected to bring more scrutiny of banking mergers, a significant development given that the number of deal announcements continues to gain steam heading into the second half of the year. The order encourages the Department of Justice, the ... READ MORE >
CHART OF THE DAY: U.S. household net worth surges, but the gains are uneven
The financial condition of U.S. households continued to improve in the first quarter, according to recent data released by the Federal Reserve. The net worth of households increased by nearly $5 trillion, or 3.8%, from the previous quarter to a record of $136.9 trillion, according to the data. On a ... READ MORE >
5 key themes from SEC Chair Gary Gensler’s House testimony
With Gary Gensler sworn in as the head 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 the third and final House Financial Services Committee hearing Thursday on the surge in meme stock ... 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. The rule change allowed banks to exclude Treasury ... READ MORE >
CHART OF THE DAY: Deflating the hype on inflation
As the economy continues to recover and is poised for a period of robust expansion, the conversation continues to shift toward the outlook for inflation. While we 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 ... 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. It’s called the supplemental leverage ratio, or SLR, and the Fed lowered it last spring to help banks maintain liquidity and ... READ MORE >