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 >
lending
Real estate dealmaking adjusts amid fears of a frozen market
Dealmaking was supposed to be the name of the game at Information Management Network’s recent investment conference. The reality is that there are few deals to be made, despite an abundance of dry powder in the market. One industry veteran who co-led a panel at the event, IMN’s 19th Annual Winter ... READ MORE >
Fed sets up $2.3 trillion in liquidity commitments, introduces Main Street Lending Program
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 ... READ MORE >
How banks can help their customers navigate the coronavirus shock
As banks begin to help their small and midsize commercial borrowers obtain financing under the CARES Act, the reality is setting in just how severely the economy is being disrupted by the coronavirus. Even though the CARES Act provides a stimulus package of $2.39 trillion, or 11.4% of gross ... READ MORE >
Saving small and medium-size business: temporary lending facility needed now
This week U.S. Treasury Secretary Steven Mnuchin told a group of Republican senators they need to act to prevent an increase in the unemployment rate to 20%. While some would say that is political hyperbole, it is not. Policymakers, investors and company managers will observe a jump in first-time jobless ... READ MORE >
As American farmers struggle, lenders become advisers
This year has been one to forget for the American farmer. Weather, trade and depressed commodity prices have combined to weigh on farmers’ abilities to generate income not only to support their family and way of life, but also to finance the debt they carry to operate their enterprises. It has been a ... READ MORE >
Low rate environment poses challenge for banks
On July 30, the Federal Reserve announced a 25-basis-point reduction in the federal funds rate. Federal Reserve Chair Jerome Powell characterized the move as an “insurance” cut to help extend what is now a record-long U.S. economic expansion amid economic headwinds related to a slowing global economy and ... READ MORE >