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liquidity
Bankers have long been waiting for interest rates to increase so that net interest margins would rise. Yet, there are other factors in play today, such as high inflation, labor shortages, and credit risk. We review the current rising rate landscape and provide approaches to manage through it successfully.
Financial institutions are awash in cash these days. How long will this situation last and what is a banker to do about it? We cover the economic indicators affecting liquidity, such as inflation and employment, and how to manage the effects of inflation with revenue protection.
We interviewed industry expert and PCBB’s President Mike Dohren about the key trends CFIs should look out for in 2024, including increased cyber risk, funding and liquidity struggles, and credit quality.
Due to inflation and rising interest rates, liquidity is tight, and is expected to get tighter this year. Effective liquidity management strategies can help CFIs take advantage of a more attractive rate environment. Here are a few ideas that may help.
Financial institutions are flush with cash and looking for opportunities to turn it into long-term assets. With loan activity still mixed and PPP forgiveness leading to more cash, community financial institutions are looking for ways to manage their balance sheets. We give you two steps that you can take today.
Loan-to-deposit ratios rose throughout 2022, with average CFI rates nearing 80%. Banks are also borrowing more from alternative sources to make up for lagging deposit growth.
CFIs have a unique opportunity to diversify their portfolios and manage risk by participating in shared national credits, also known as syndicated loans. Learn about the key advantages CFIs can gain.
Over the past year, the financial sector has witnessed many disruptive forces. In a three-part series, we review the challenges CFIs have faced and how they have responded.
With recent Fed funds market changes, CFIs should closely monitor liquidity buffers to ensure adequate cash flow volatility protection. We suggest strategies for a proactive approach.
Some CFIs are finding that rising interest rates are causing their current calculated asset levels to show up as negative under the tangible capital rule used by Federal Home Loan Bank. Financial organizations across the country are asking for relief.
Community financial institutions have seen low interest rates for a long period of time. This caused net interest margins to be squeezed tightly, yet it allowed bankers to reduce their dependence on wholesale funding. Now, when interest rates are expected to rise, it is crucial to have strategies to balance increasing net interest income with rising funding costs.
While the BID takes a rest for the holidays, we revisit some of the year's most popular articles.
The personal consumption expenditures price index rose more than 3.6% YoY, according to the US Commerce Department. With inflation here for now, community financial institutions should update their loan and liquidity stress tests to ensure they are ready for anything. Here are three steps to prepare your institution for the coming effects.
While waiting for lending activity to pick up, community financial institutions are still flush with cash and looking for ways to use it. Some have opted for securities, but there is another option available: syndicated commercial and industrial loans. This $1.5T market could provide opportunities for your institution’s liquidity right now. We explain how.
Liquidity risk management is always important for bankers, but especially during times like these. We highlight three key considerations.
Combining liquidity and credit stress testing provides a more complete picture around your institution's resiliency.
During this pandemic crisis, financial institutions should evaluate liquidity and capital management models and policies. Also, make sure to stress your liquidity projections to evaluate adverse and severe scenarios.
The FDIC has provided guidance on capital and liquidity buffers for financial institutions to help their customers during the coronavirus crisis. We give you a quick summary.
Now that rates are rising, banks need to be effective in growing inexpensive deposits. Some tips for community banks to consider.
For banks that aren't ready to go public, but require liquidity, there may be several viable alternatives.