PayThink

Nearly 100% of all urban riots in America have occurred where the market economy either failed or didn't exist to begin with. Banks are well positioned to help bring economic opportunity to underserved neighborhoods and make free enterprise work for all.

All banks must manage risk. But this needn't be their sole focus any more than a restaurateur's sole purpose should be to prevent contaminants from getting into food.

While we've made progress in regulating banks, it's also necessary to ask whether we are making the most of an opportunity to ensure that the financial industry serves the best interests of society.

For many industries, the introduction of open standards has been a key driver for innovation. The rapid evolution of the internet and online services offer a vivid example of the degree to which open standards can enable immense innovation and growth.

Most banks appear to be coping well with the CFPB's ability-to-repay rule for mortgages, but the burden is falling harder on community banks. A new proposal that would allow more small lenders to grant home loans to borrowers with high levels of debt could help.

Investor-owned ratings agencies would send a message to mutual fund shareholders, retirement plan participants and other investors that steps have been taken to avoid repeating the inaccurate ratings that contributed so heavily to the financial crisis.

The celebration that accompanied China's loosening card regulations is premature. It's wishful thinking that Visa and MasterCard easily be able to capture a percentage of the humongous China market.

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including how convenience may help banks beat out Silicon Valley and whether community banks can reduce their regulatory burden on their own.

A dysfunctional culture can harm banks' long-term viability and share value growth. Luckily, these problems can be fixed by encouraging team accountability, empowering employees to make decisions, and showing appreciation for staffers.

The good news is that EMV is very effective at preventing the use of counterfeit credit/debit cards at the point of sale (POS), commonly referred to as card-present (CP) fraud.