Net interest margin

Negative benchmark interest rates are becoming commonplace in Europe and Japan. Here’s what US credit unions need to know in case that happens here.

Many lenders are establishing a firm bottom on variable interest rates amid intense competition for commercial credits, rising deposit costs and the possibility that the Fed could take rates to unprecedented lows.

David Becker, who founded First Internet Bank two decades ago, says traditional banks' digital-only ventures are only making his bank look more mainstream.

Profits dipped 7% from a year earlier but banks still earned nearly $60 billion, the agency said in its Quarterly Banking Profile.

Banks need to manage margins more actively — including the use of new modeling technology — in the current low-interest-rate environment.

The once-acquisitive company appears ready to come off the sidelines, but will it be as a buyer or seller?

The Las Vegas-based institution reported that its net interest margin rose during the third quarter of 2019 as consumer loan balances increased.

The San Antonio company said it withstood rate pressures because it has been ahead of the game in deposit pricing over the last two years.

Huntington Bancshares and U.S. Bancorp also said in recent days that they are eliminating jobs to reduce overhead and improve profits. With net interest margins shrinking and branch traffic continuing to decline, expect more banks to follow suit, analysts say.

Count Citizens Financial’s Bruce Van Saun among those who think interest rate cuts could halt by mid-2020. The key, he says, is to focus on delivering services customers are willing to pay fees for and to skillfully reprice deposits until then.