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On the whole, large banks appear to have primed their books for a rebound in rates: levels of short-term assets relative to short-term liabilities are now higher than they have been during roughly the past decade. The postures of individual institutions vary widely, however.
Despite richer returns available further out on the yield curve, large banks have generally not shifted toward long-dated securities, according to regulatory data.
Growth was particularly brisk at institutions with less than $20 billion of assets, where CEO compensation measured 2% of total payroll expenses, a far higher level than at larger banks.
Annual meetings held by Citi and Bank of New York Mellon have been shaken by investor dissent over executive pay, and observers anticipate more rebukes in the coming month.
There have always been regulatory impediments to the pursuit of profit, but bankers are increasingly worried about how to preserve the self-determination they have left.
Banks that are caught flat-footed by the Baby Boomers' next big demographic shift will want to avoid the "nobody saw it coming" argument because it really won't be all that believable. The Insurance Co. Angle
Confusing fees, perplexing choices, interactions that can be painful. Retail banking is full of complexities that keep consumers baffled. But will people pay for a simpler experience?
Fundamentally, banks connect those with money to those who need it. By limiting access to the systems that handle the transactions, banks have been able to charge big fees. But the walls are breaking down now.
The underperformance of big bank stocks last year helped restore their yields to a rough parity with smaller peers, but actual quarterly payouts remained a small fraction of pre-crisis levels.
Bank marketers are generally content with how their firms approach social media. The trick now is using digital channels to synthesize what consumers want before they even know they want it.
As the industry evolves, American Banker keeps pace. Going beyond breaking news and headline events, American Banker's editorial staff digs deeper than the mainstream business press to identify and analyze trends.