Interest rate risk

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.

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

In September, loan balances grew at a slower pace than a year earlier, according to the latest trends report from CUNA Mutual.

Muneera Carr, Comerica's CFO since 2017, will leave in October and James Herzog, who had been the bank's treasurer, will serve as interim CFO until a successor is named.

The bank started buying more Treasurys and mortgage-backeds over a year ago, long before talk about rate cuts. What did it know that its rivals didn't?

The Federal Reserve's monetary policies have exacerbated the wealth gap, making the central bank a vulnerable target for Trump. He’s taking full advantage.

The approach could work as long as the Fed were to add certain thresholds.

KeyCorp, Regions Financial and others have sacrificed short-term profits to avoid being crushed by an anticipated decline in interest rates.

More than 66% of the banks reported a jump in net income during the first quarter but new risks are emerging in interest rates and underwriting, the Federal Deposit Insurance Corp. said Wednesday.

The Rhode Island bank’s deposit costs nearly doubled in the first quarter, but CEO Bruce Van Saun says it has to go on the offensive to sustain loan growth.

Credit unions need to be thinking about pressure on net interest margins and declining revenues.

The agency's semiannual report on risks in the industry focused heavily on the high volume of commercial loans as well as banks' exposure to nonfinancial corporate debt, which is near a record share of GDP.

A 2016 law expanded credit union powers in the Great Lakes State, but it also capped how CUs can invest in GSEs – a move that nearly cost one institution $6 million.

The industry’s profit was $60.2 billion, a more than 7% increase from the previous record set in the first quarter and a 25% leap from a year earlier, the agency said in its quarterly report on the industry's health.

One expert offers credit union leaders "the best defense against risk" and lessons from previous economic crises.

As interest rates rise, banks need to watch how much they are paying on deposits to avoid exceeding rate caps designed to ensure liquidity.

Focus instead on legislation that will prevent the next economic crisis and address technological change, says Rep. Patrick McHenry, a Republican front-runner to become Financial Services Committee chairman.

The remarks by the comptroller of the currency came as his agency released a new report on emerging risks in the banking industry.

After more than a decade, a rising interest rate environment is coming. Are credit unions ready?

Neither the central bank’s gradual raising of interest rates, nor its modest changes to capital rules are likely to meaningfully increase risk to the financial system.