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Savings institutions which invest on modern technology to meet regulatory requirements are more assured that they are less likely to violate regulatory policies. They form Regulation DD committees which oversee compliance through the use of data processing software. The technology provides them with consistent annual percentage yield calculations for customers and helps them come up with the required disclosures when needed., Does Technology Play a Meaningful Role in Compliance? Look No Further Than Truth in Savings for the Answer For an example of what technology is coming to mean for financial [...]

Savings banks have lost most of their housing finance market share because of the increased deregulation of the banking industry, enabling increased competition among the different financial institutions. Passage of the Financial Institutions Reform, Recovery and Enforcement Act and the changing interest rate environment has further exacerbated this loss. Savings banks can recover by embracing the mortgage lending market which has experienced significant demand in recent years as a result of an emphasis on housing., In the halcyon days of homeownership, savings institutions supported more than half the housing finance market. As recently as 1989, savings institutions originated more than 35 percent of all home [...]

Banking deregulation should slow down and digest the many changes of the past three years, according to new U.S. League of Savings Institutions president Paul W. Prior. Savings banks, he contends, should stay separate from commercial banking even after deregulation is complete.

Banking deregulation has lead to a much-needed infusion of capital in the savings-banks sector, as $1.6 billion has been raised through bank conversions to public-held stock status. Conversion to stock-owned status is seen as a major stabilizing factor in the troubled industry.

A complete overview of the history of bank holding company law reveals periodic increases in banking industry economic concentration, followed by legislative responses. Current banking deregulation in this context suggests an increased danger of financial system instability.

Savings and loan associations nationwide are considering entering the commercial lending business. Commercial bank services and experience in this field differ greatly from the operations and expertise of most savings banks. Caution is prescribed until internal expertise can be developed - or hired.

Banking deregulation has opened commercial lending activity to federally chartered savings and mutual savings banks. Perspectives on the opportunities and pratfalls of commercial business are offered by industry executives, who agree that the lure of larger profit margins is a windfall to the ailing industry.

After the economic slump of the past three years and the onslaught of changes from deregulation of the industry, savings-banks find they are under-capitalized. Industry leaders say they need stock conversions to respond to market pressures for development of new products and services in order to remain competitive.

Various strategies for savings bank survival in the deregulated business climate are highlighted and contrasted. Some factors determining the future path of individual banks are size, location, and profitablity by product and branch. Debate centers on mortgage lending profitability versus other banking services previously not offered at savings and loans, such as insurance.

Economic pressures are increasingly tending to force a resolution of the issue of interstate banking together with related and associated moves toward deregulation and a situation characterized by free and open competition among financial institutions.

The market for nonconforming loans should grow in 1995 as more financial institutions take an interest in the increasingly profitable B and C markets. The anti-regulation mood in the Republican-controlled Congress is one major reason for the market's expected expansion as it is likely to lead to a lighter regulatory regime in 1995 and a push for more self-regulation. This, in turn, should lead to a greater willingness among banks and other lending sources to do business with borrowers whose financial profiles may not conform with existing regulations., More financial institutions will become active in B and C lending in order to boost profitability, according to Craig Cooper, executive vice president of Fairbanks Mortgage, who has been in [...]