Industry Outlook

Our take on the latest trending events:

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Heightened competition among fintechs and narrower margins as a result of low interest rates are prompting banks to focus their attention on fee income and liquidity.
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Restaurant loans are struggling right now with many casual dining chins filing for bankruptcy protection. Could this be a sign that an economic downturn is looming?
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There are talks of Fannie Mae and Freddie Mac being removed from conservatorship, causing concern over the future of these GSEs.
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In the event that another recession takes place, some banks and lenders are retreating from loans in certain sectors, including commercial real estate, to hedge against risk. All banks should take a closer look at their loan portfolios to adjust them for possible risks.
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Valley National Bank recently announced plans to acquire Oritani Financial, which will not only help boost its assets and presence in its home state of New Jersey and other nearby states, but will also help strengthen its loan portfolio. And it's time that other banks follow suit.
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Ally Financial is selling one portfolio and adding another product to strengthen its loan portfolio, and other banks should follow suit.
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Lending to companies that are already overleveraged is risky business for lenders. But it's not the banks that are necessarily at risk, but nonbank finance companies.
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There is a new wave of large bank consolidations on the horizon, with a recent deal between BB&T and SunTrust marking the largest in about a decade. As such, now is the time for banks to clean up their balance sheets and be prepared for these anticipated mergers.
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New rent regulations in New York are negatively affecting community banks, prompting lenders to revisit their loan portfolios to ensure they're well-balanced.
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Tech giants like Google and Amazon have recently been exploring the financial space, but will they follow through with an application for national bank charter?
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What sets Garnet Capital's approach to closing deals apart from others?
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Bank consolidations appear to be more attractive to midsize banks these days, thanks to current regulatory and market conditions, including heightened competition from bigger banks, pending regulatory changes, and the explosion of mobile banking.
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With uncertainty over what will happen with BREXIT, how will American financial institutions be affected? Read on to learn more.
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There are several common concerns among community banks across the US: attracting the right types of clients using affordable tactics, putting profitable loans on the books, and freeing up capital on portfolios that are being taken up by delinquent and underperforming assets.
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Anyone following the news will regularly hear of continued brick-and-mortar retail store closures, many of which are big names in the retail sphere that are seemingly dwindling by the minute. And the wave of retail store closures only seems to be getting started, as more are expected well into 2019 and beyond.
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Does the future of FinTech lie in mergers and combinations within the financial services industry globally?
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Will big changes be on the horizon for the accounting laws on Current Expected Credit Losses (CECL)? At a recent roundtable meeting hosted by the FASB, some banks and lenders pushed back on the new standard that's to take effect early next year, asking the FASB to reconsider modifying the new model, while others are in favor of it proceeding. So, what will the FASB do with the concerns raised?
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As leveraged loans become more prolific, debt cushions are shrinking and posing a risk to certain lenders. This is the ideal time to evaluate and adjust portfolios for risk and return.
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Read on to learn how one bank CEO views his institution's recent growth, and how your business can learn from his example.
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A scenario of rising interest rates can be challenging for banks caught with lower interest rated, long-term loans on their books. Banks can sell these loans and use the proceeds to improve their margins and strengthen their balance sheets.
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Strong trends in employment and GDP spelled good macroeconomic news in 2018, and the strong trends are expected to continue in 2019. As a result, trends in the consumer credit market should be robust as well.
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CECL is a new standard set forth by the FASB. It is set to be implemented in 2020 for all SEC registrants and 2021 for all other banks. The ABA terms it a "significant challenge for the banking industry" and notes that it has the potential to change the way banks do business. While many industry associations seek to delay or mitigate the implementation of CECL, the fact is, it is coming, and banks need to be prepared.
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Non-banks now write the majority of mortgages in the U.S., but the sustainability of their business model in an economic downturn is not proven - and may be questionable. In addition, traditional banks lend to non-banks, and are thus still exposed to any vulnerability they have.
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