At least early in the financial crisis, the high rate of foreclosures seemed to be due more to households' overreaching than to predatory lending. A disproportionate number of those being foreclosed on were well-educated, well-off and relatively young people.
Congress opened the door five years ago for banks to enter the insurance and investment arenas, but the expected rush has yet to occur. That’s probably fine with critics, who feared that the return of universal banks would bring back Depression-like instability.
Initially, Basel II will affect only the world's largest banking organizations. Eventually, the impact will trickle down to others. Some regional and community bankers, for example, might find it more difficult to survive. Consumers, on the other hand, could wind up with lower rates on home mortgages.
Banks that focus on traditional activities such as loan-making and deposit-taking are losing ground to those that offer new, complex services, such as securitizing consumer loans and brokering swap agreements for business customers. This shift in the industry has implications for bankers, bank supervisors and customers.
These government-sponsored enterprises continue to make headlines because of their explosive growth and resulting heavyweight status within the nation's financial system. Critics fear what would happen if one of these giants were to fail—or even stumble. Supporters say that the risks are overblown and that the benefits to homeowners are underappreciated.
Deposit-hungry community banks are turning to a new funding tool called the Certificate of Deposit Account Registry Service. The service says it can help smaller banks attract more jumbo deposits from local customers.
The cover story examines why small banks aren't usually thrown for a loop when the local economy has a rough ride.
The futures market is not a perfect crystal ball. In some cases, it accurately forecasts what spot prices will be in the future. But not always.
Easy access to FHLB funds has helped community banks stay afloat in today's competitive markets, but could pose a risk to the FDIC's insurance fund.
Despite their size disadvantage, community banks have repeatedly dodged the roundhouse punch from big banks and their economies of scale. Can personalized customer service keep them sparring?
With higher overhead costs and lower fee income, small banks are in serious danger of getting lapped by their larger competitors. Can community banks find a way to stay on the track?
The rules of the game are changing for community banks.
