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The Value Of Devaluation

August 28, 2015 -  It's been hard to ignore recent market volatility and earlier this week, we wrote about China's efforts to devalue its currency. The moves by the Chinese Central Bank have destabilized markets throughout the world, and while this volatility is not entirely due to China's efforts to control its currency in order to combat slowing economic growth, it is at least in part. The volatility has particularly been in response to the implications of China reverting to sledge hammer currency actions it had mostly moved away from in recent years, as its economy has matured. The world is...

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Popular Back Issues

May 13, 2015  -  Single Serve Loan Hedge Opportunity

Have you ever wondered what percentage of the world's coffee goes down the drain? A lot less now than what used to, according to estimates by the National Coffee Association. This is because there has been a huge uptick in the number of people who own single-serve coffee makers. In fact, about 27% of consumers now own single-serve brewers and it is estimated another 12% will buy one in the near future. Historically speaking, one of the largest consumers of coffee has been the kitchen sink, but now people are making only as much coffee as they...

June 05, 2014  -  Checking In For Extraordinary Service

Over the years there have been numerous claims that the Eagles 1970s hit "Hotel California" is about Satanism., the popular myth-busting website, refutes this contention, explaining that the popular song is really a metaphor for the West Coast music industry and its effects on talented, but na?ve artists caught up in its excesses. Large banks are certainly no strangers to the dangers of overindulgence as seen by the recent crisis, yet we take pride in pointing out that the banking industry overall (and community banks in particular) is stronger than it was in 2008...


We just recently returned from a brief vacation in Southern Europe. While that may sound a bit over the top, we thought some travel bargains might be had, given the economic climate and that we could perhaps learn new tricks from banks stressed in the region. We actually didn't seem to save much money, since everyone figured us for Americans right away and we were dismayed to be confronted with unseasonably foul wintry weather, despite the calendar saying spring was upon us. On a similar note, regardless of the fact that everyone seems to be reading about regulatory relief these days,...


While some may take umbrage as to the source of this little oft-used childhood ditty, the best explanation goes way back to 1810 in a poem written by William Blake. In it, Blake is paraphrased over the years from his early writing, "Deceiver, dissembler your trousers are alight; from what pole or gallows shall they dangle in the night?" as "Liar, liar, pants on fire, hanging from a telephone wire." We thought this was a fun way to let you in on a study by researchers from the University of Massachusetts, who found 70% of people lie. Perhaps even stranger...


If you look back at pictures of the original Superman, you notice a couple of things about George Reeves. To start, he did not look stronger than a locomotive or faster than a speeding bullet. In fact, he looked like the average middle-aged banker in a Halloween costume who was battling a Krispy Kreme fetish. This is a different perception than when we first saw him on TV, where he seemed to be truly the Man of Steel. Things change and in 2012 we expect our Superman to log in a little more time on the bench press. Our perception...


After we ran yesterday's article on forecasting, many readers wanted to know not only about our Peruvian underwear, but also about our forecasts of the market. To all of those that asked about the future, we are humbled by the fact that you care enough about what we think. Honestly though, despite having a formal background in economics and being involved with the markets for 25+ years - we have no idea. In fact, that was our point yesterday. Despite having large staffs, huge budgets and the data of the largest banks on earth, major economists came in with more...

May 24, 2010  -  LEGISLATIVE RISK

If your risk management process is working, hopefully you are tracking what the potential legislative changes could mean for your bank. That's because there have been few other times in history where legislative action could result in a bank having to change its core business model. Luckily, we still have some nascent faith in the American political machine and believe the process will work to create headlines, but little in the way of material change for community banks. That said, we thought we would handicap a couple of items to make sure the salient points hit your...


In A Connecticut Yankee in King Arthur's Court, Mark Twain wrote, "she was wise, subtle, and knew more than one way to skin a cat." While we are not sure why anybody would want to skin a cat, we can tell you we wouldn't want to be the people that tried. Regardless, when it comes to loan growth, there are many ways to skin that too (most of which are a lot less painful). In a recent survey, we sampled 40 banks across the country and asked lenders for feedback on what they see in borrower demand between fixed vs....

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About the Banc Investment Daily

The Banc Investment Daily has been published in various forms for over fifteen years. This daily newsletter reaches an audience of over 25,000 people employed by financial institutions and regulatory bodies and has become a staple in the morning reading routine for bank executives nationwide.

The BID is a compilation of news, facts and opinions focused on issues vital to financial institutions. In addition to the newsletter, BID content is syndicated to financial institutions and trade associations throughout the country and has appeared in major financial publications such as the American Banker. Issues often contain:

  • Important bank-related news
  • Tracking of sales and merger multiples
  • Economic commentary and Federal Reserve actions
  • Recaps of the fixed income and bank loan markets
  • Discussion of regulatory and compliance issues
  • Ideas on performance and risk management

The History of the Banc Investment Daily

Over 15 years ago, we had the idea to create a daily publication designed specifically for community bankers. We add a few hundred new bankers or regulators each week to the distribution list of the Banc Investment Daily (BID) and readership is now over 25 thousand. Given that growth, about every 2 years we stop to take a moment and explain the intent of each area within the BID. We do this to help make sure readers can effectively utilize everything the BID is designed to offer, while avoiding embarrassment at cocktail parties.

First and foremost, the BID is 100% focused on community bank issues, designed to provide thought-provoking information - all presented in an easy-to-read single page format. It has never been longer than one page in length, but every single space within that page is maximized every single day.

The creative process is also unique, as it begins around 4:30am PT and ends promptly (ok, most of the time but we really try) at 6:30am PT each morning. That provides time to create, edit and refine the BID and also ensures it gets out to everyone just in time for that 1st or 2nd cup of morning coffee. Topics come from a variety of sources, including bankers themselves (one of our favorite sources - although once again we go on record saying we have not put listening devices in anyone’s board room); regulators (from conferences, face to face meetings, via phone or email - but always anonymous); industry experts (these can run the gamut from banking attorneys, accounting firms, technology and other companies - as long as they have a specialty in community banking) and from our own research.

The BID basically breaks into two major sections. The first is the left side of the page (which we internally refer to as the "Top Left") and the second is the rest of the publication (which we internally refer to as "everything else").

The Top Left is basically our "idea of the day." The primary goal of it is to keep things fresh by putting a new spin on an old idea, getting bankers thinking, alerting you to upcoming regulatory issues, spreading the word or educating. Creating this section takes 2 hours every morning and tying it back to a random (and seemingly unrelated) picture is a critical part of the process (we believe that as with someone in solitary confinement, you have to focus on small things and build around them so you don’t go crazy). Sometimes we start with a nascent idea (oh yea, we also try to sprinkle in at least one big word to keep everyone's vocabulary sharp) and find a random picture that seems to work, while other times we challenge ourselves by creating an idea after the picture has been selected.

Believe it or not, the rest of the publication takes just as long as the Top Left. To make sure bankers stay on top of things, we focus on key economic data for the day, update everyone on what moved yields up or down yesterday, how things are shaping up today and find pertinent stories bankers need to know about. To do this piece alone, we scour hundreds of sources, weed out only the best few and make sure you know about them.

We often get questions about the rate box at the bottom as well. It contains the monthly change in Treasury yields (so you can keep track of your mark to market and better manage your loan/deposit pricing for various maturities); Libor is included since it is the de-facto funding level for large banks worldwide; the Swap rate is provided as a snapshot to assist in pricing loans; and Fed Funds futures are captured so you know when the market thinks the FOMC will raise or lower rates next. At the bottom running across, we also give daily updates on money market mutual funds and portfolio deposits (to keep you aware of overnight pricing levels); the Prime rate (everyone forgets now and again); overnight Libor (so you know where overnight funding around the world is in relation to Fed Funds) and the TED Spread (bigger numbers show less liquidity and so you can track how liquidity changes by monitoring 3M "risk free" Treasury movement vs. 3M "bank funding costs" Libor).

In closing, we are proud to say we have not missed a single business day of the past 4,000+ creating and distributing the BID and we thank you for your readership.

The Banc Investment Daily is a targeted newsletter specifically created for independent financial institutions.
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