American Banker - May 2023

BANK FAILURES' RIPPLE EFFECTS

The Federal Reserve's long-awaited real-time payment system is at the finish line. But there's still some wrinkles that need to be ironed out so it can work with its cousin from The Clearing House. And how much will banks have to pay?

The central bank's instant payment system could bring enormous benefits to banks and their customers. But it also presents new risks to manage.

Fintechs were already clustered in New York and San Francisco. Now that most startups work with the four largest banks, it's even harder to create new technology in the heartland.

Ever since Silicon Valley and Signature banks collapsed in March, a scramble began among regulators, politicians, bank executives and others to manage the fallout from this spring's banking crisis. Here are 10 predictions of what still lies ahead to be dealt with.

After the failures of Silicon Valley Bank and Signature Bank, other institutions rushed to reassure their customers. But it can be tricky to ensure these messages do no harm.

Try keeping quiet and listening instead of talking, suggests the journalist Dan Lyons in his new book, "STFU." Doing so can lead to a host of benefits, from career advancement to a better marriage.

To strengthen the industry, large regional banks should be subjected to heightened supervision and the Federal Deposit Insurance Corp. should change how it assesses deposit insurance premiums.

Stakeholders have been focused on what went wrong in the months before Silicon Valley Bank was taken over by regulators. However, essential risk management was missed more than a year ago.