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How to boost revenue despite a reg order
Many banks are weighed down with orders tied to the Bank Secrecy Act and anti-money-laundering laws. Others are dealing with low Community Reinvestment Act ratings. Bank M&A and branching are typically off the table until such issues are addressed, but that doesn't mean all growth opportunities are gone. Here are some ways constrained banks might be able to add revenue while working through their regulatory challenges.
Form a joint venture
Institutions locked out of bank acquisitions could still have opportunities to invest in other companies. That’s what Ameris Bancorp in Moultrie, Ga., did after being hit with a regulatory order. Ameris bought a minority stake in an insurance-premium finance firm — with its regulators’ blessing — with hopes of buying the company outright once its order is lifted.