Economic News from RSM
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 >
For real estate private fund investing, rising rates have made deal metrics harder to obtain, and as a result, the amount of capital being raised for funds has created hesitancy in the overall market. … READ MORE >
The Federal Reserve made history on Thursday by moving aggressively to provide up to $2.3 trillion in liquidity commitments to support the economy. This policy intends to bolster households, small and medium-sized firms, and the ability of state and local governments to float debt to ensure critical services during the pandemic. … READ MORE >
Even though the CARES Act provides a stimulus package of $2.39 trillion, or 11.4% of gross domestic product — along with a relaxing of rules surrounding payment deferrals and loan modifications by banking regulators — that may not be enough to blunt the continued decline in economic activity. … READ MORE >
If the fiscal and monetary authority do not act with temporary lending relief for small and midsize companies, soon a disaster will encompass Main Street businesses through no fault of their own—this disaster is entirely preventable. … READ MORE >
As painful as this year has been for American farmers, it is also forcing a reckoning among lenders and should prompt a rethinking of their role, one that goes beyond primarily being a source of financing, and instead becoming more as a trusted adviser. … READ MORE >
The Fed recently cut its lending rate by 25 basis points and is expected to cut again later this year. Meanwhile, as longer-term rates continue to decline, banks will be faced with further pressure on their net interest margins. … READ MORE >
