Search

EECU has been named as one of America's Best Regional Banks and Credit Unions by Newsweek and Plant-A Insights Group. It earned a five-star rating in the list, which is based on profitability, press coverage and customer reviews, according to a press release. [ABSTRACT FROM AUTHOR]

Beal Bank USA, part of billionaire Andy Beal's financial empire, borrowed billions from the Federal Reserve's discount window in late 2022, just before a regional banking crisis. While other banks collapsed, Beal Bank USA saw record profits in 2022, doubling its net income to $1.2 billion. The bank's borrowing from the Fed raised questions about emergency lending facility use and sparked speculation about the health of banks. [Extracted from the article]

Consider artificial intelligence, especially gen AI, a real-time and predictive tool to elevate your workforce. Financial wellness has long been part of the strategic vision for financial services institutions seeking to build customer loyalty and, by extension, create a durable revenue stream. Regional banks, community banks, and credit unions in particular, are motivated to differentiate themselves from megabanks by becoming true partners with customers and members on their financial journeys. Unfortunately, [ABSTRACT FROM AUTHOR]

Canyon Partners' Chief Investment Officer Todd Lemkin is leaving the firm after over two decades, with Jeff Kivitz set to replace him. The Dallas-based firm has also announced other leadership changes, including Davide Amico taking over as head of Europe and Jonathan Barzideh and Chaney Sheffield becoming co-heads of opportunistic credit. Lemkin, who focused on various sectors during his tenure, was promoted to co-CIO in 2017 and oversaw European investments and distressed bank loans. The firm recently agreed to sell a stake to Dai-ichi Life Holdings, with potential future acquisitions by the Japanese insurer. [Extracted from the article]

The article discusses the controversy surrounding Commonwealth Bank's plan to charge a $3 fee for assisted withdrawals at bank branches, post offices, or over the phone. It highlights the importance of maintaining bank branches and access to cash, especially in rural areas where closures have had significant social and economic impacts. The government is considering a rural services levy on banks to fund regional banking, with potential unintended consequences such as stifling competition and passing on costs to customers. Lessons from other countries, such as India, the US, Canada, the UK, and South Africa, offer insights into different approaches to addressing regional banking challenges, including leveraging post offices for basic banking services. [Extracted from the article]

Digital Edge DC, backed by Stonepeak Infrastructure Partners, is considering a loan of $400 million to $500 million to fund a data center project in Navi Mumbai, India. The company, based in Singapore, is in discussions with international and regional banks for the financing, which could have a tenor of five to seven years. This initiative reflects the increasing demand for data center services related to artificial intelligence in the region, with the project expected to be completed in phases by the first quarter of 2025. [Extracted from the article]

UBS Group AG Chairman Colm Kelleher believes that better access to liquidity and stronger recovery programs are necessary to improve regulations for banks in the aftermath of the Credit Suisse collapse. He emphasized the importance of robust recovery and resolution programs and expanding collateral pools. UBS, which acquired Credit Suisse in a government-brokered deal, is facing pressure from Swiss financial regulators to hold more capital. Major global banks, including UBS, are pushing back against stricter rules, with US banks recently winning a battle to revise capital rules proposals. Switzerland's financial regulator, Finma, is focused on early intervention to prevent risks to financial stability and is designing new rules, including higher capital requirements for UBS. UBS has expressed opposition to these regulations, arguing that they are the wrong remedy and blaming regulators for the downfall of Credit Suisse. [Extracted from the article]

Tokyo Star Bank, a small local bank in Japan, is offering accounts and loans to non-residents who want to buy real estate in the country. This service has seen rapid growth since its introduction last year, with the bank adding several hundred clients, mostly from Taiwan, mainland China, Hong Kong, and Singapore. Tokyo Star is one of the few Japanese banks offering accounts for non-residents, and it expects its loans to high-net-worth clients to triple in the second half of this year. The bank's backing from CTBC Financial Holding Co. allows it to provide loans to international clients, something that Japanese lenders typically don't do due to conservative practices. Foreign clients have taken on loans ranging from ¥20 million to several billion yen, using them to purchase various types of properties. Tokyo Star's growth reflects the trend of foreign real estate investment in Japan, particularly from Asian buyers. The bank aims to make cross-border banking a core business within the next five years and will target wealthy Chinese across Asia for growth. The bank charges competitive rates for international customers, similar to those available for local residents. Despite the recent appreciation of the yen and the possibility of further rate hikes from the Bank of Japan, there is still high interest in Japanese real estate due to its relatively affordable prices compared to other parts of the world. [Extracted from the article]

Regional banks in the US and Canada are increasing their involvement in oil, gas, and coal deals, filling the gap left by European banks that have retreated from financing fossil fuels due to climate regulations. Texas Capital Bank has made significant gains in this sector, along with other banks such as Truist Securities, FHN Financial, Cadence Bank, BOK Financial Corp., and Canadian Western Bank. The rise of these regional banks represents a shift in the industry, as they are not subject to the same regulations as larger banks. However, the financing of fossil fuels continues to be big business for Wall Street banks like Wells Fargo, JPMorgan Chase, and Bank of America. Additionally, fossil fuel clients are increasingly accessing financing outside of the banking sector, with banks helping to establish connections with alternative sources of capital. [Extracted from the article]

Regional banks in the US and Canada, such as Texas Capital Bank, Truist Securities, and BOK Financial, are increasing their involvement in oil, gas, and coal deals as European banks retreat from the sector due to climate regulations. These regional banks are climbing the league table of top lenders in fossil fuel transactions, and they are benefiting from a period of consolidation in the US oil and gas sector and declining interest rates. This shift towards regional banks in the financing of fossil fuels is seen as a significant change for the industry, although concerns have been raised about the lack of prudential regulations for these smaller banks. Meanwhile, large banks on Wall Street, including Wells Fargo, JPMorgan Chase, and Bank of America, continue to provide significant loans for the fossil fuel sector. The study also highlights the phenomenon of finance substitution, where fossil fuel clients are finding alternative sources of financing outside the banking sector. [Extracted from the article]

Regional banks in the US and Canada are increasing their involvement in oil, gas, and coal deals, filling the gap left by European banks that have retreated from the sector due to climate rules. Texas Capital Bank has made significant gains in the past 2.5 years, along with other banks such as Truist Securities, FHN Financial, Cadence Bank, BOK Financial Corp., and Canadian Western Bank. This shift in financing for fossil fuels is seen as a significant change for the industry, as smaller banks are not subject to the same regulations as larger banks. However, larger banks like Wells Fargo, JPMorgan Chase, and Bank of America continue to be major lenders in the sector. The study also found that fossil-fuel clients are increasingly accessing financing outside of the banking sector, with banks helping to establish connections with alternative sources of capital. [Extracted from the article]

The Federal Reserve is seeking public input on potential adjustments to its discount window lending facility, which is used by banks and credit unions during times of financial stress. The Fed is specifically looking for feedback on various operational practices, including legal documentation, collateral pledging and withdrawal, loan requests and repayments, intraday credit extension, and communication practices. The goal is to make banks more comfortable using the discount window on a regular basis to ensure quick response in the event of a financial shock. This initiative has gained urgency following the collapse of Silicon Valley Bank and other regional lenders, which revealed the need for better access to the discount window. [Extracted from the article]

Mitsubishi UFJ Financial Group (MUFG) is planning to hire seven bankers in its London office to focus on banking technology startups in Europe, the Middle East, and Africa. MUFG has traditionally relied on its presence in Asia to establish connections with large technology companies, but is now expanding its focus to middle-market companies. The new team, led by Adam Ball, will initially focus on the UK and Ireland, with plans to expand into other countries in the future. MUFG's move into lending comes as the Bank of Japan raises rates, which is expected to boost banks' revenue. [Extracted from the article]

Directors at the Federal Reserve Banks of New York and Chicago voted in favor of lowering the discount lending rate, indicating potential support for an interest-rate cut last month. The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Fed bank's lending facility. The regional Fed boards cannot change the discount rate without approval from the Board of Governors in Washington, and their votes typically align with the policy preferences of their respective presidents. The Federal Reserve is expected to lower rates at their upcoming meeting in September. [Extracted from the article]

Carlyle Group Inc. has agreed to purchase approximately $450 million of loans from Sungage Financial, a financing company that provides loans to consumers for adding solar cells to their homes. This acquisition comes as regional banks and traditional buyers have reduced their purchases of such loans. Carlyle will also acquire a minority stake in Sungage as part of the transaction. The push from private credit lenders to acquire these loans has increased since the collapse of Silicon Valley Bank last year. Sungage offers online financing for solar, roof, and battery loans. [Extracted from the article]

According to a survey conducted by the Federal Reserve, more US banks have tightened their credit standards for commercial and industrial loans in the first quarter of this year. The net share of banks that reported stricter lending standards rose to 15.6% from 14.5% in the previous quarter. This trend of tightening credit standards has been ongoing since the second quarter of 2022, following a series of regional bank failures. The Federal Reserve's decision to raise its benchmark rate has contributed to higher borrowing costs for businesses and households. [Extracted from the article]

KKR & Co. executives believe there is a growing market for synthetic risk-transfer deals, as US banks look to reduce their loan exposure due to stricter capital requirements following last year's regional bank crisis. While these deals typically involve corporate loans, fund finance facilities, and consumer-term loans, banks are now exploring other asset classes for risk transfer. KKR is also considering entering the market for second-hand private equity stakes, although it is not a priority for the company. The market for private equity secondaries has grown in recent years, and KKR is evaluating potential opportunities in this area. [Extracted from the article]

US regional banks, including Citizens Financial Group Inc., BOK Financial Corp., and Truist Securities Inc., are increasing their lending to oil, gas, and coal clients, taking advantage of the market share left by European banks that are pulling away due to climate regulations. These regional banks have climbed up the league table for fossil-fuel lenders and have seen a significant increase in the number of fossil-fuel loans provided since the start of 2022. While some banks disclose the emissions associated with their lending and investment, others do not. This shift in lending practices challenges assumptions around divestment policies and shows that fossil-fuel companies are finding alternative sources of finance. [Extracted from the article]

S&P Global Ratings has lowered its outlook on five US regional lenders to negative from stable due to concerns about the stresses in commercial real estate markets. The ratings provider believes that increases in modified loans and loan maturities could lead to a decline in asset quality and performance for these lenders. The five banks affected by the outlook revision are First Commonwealth Financial Corp., M&T Bank Corp., Synovus Financial Corp., Trustmark Corp., and Valley National Bancorp. S&P also notes that if the Federal Reserve were to cut interest rates, it could alleviate some of the stress in the commercial real estate sector. [Extracted from the article]

The Bank Term Funding Program (BTFP), which was established in March 2023 to restore confidence in the financial system after the collapse of Silicon Valley Bank, is set to stop providing loans. This has raised concerns about whether the US financial system has enough tools to maintain sufficient cash reserves. Banks must now find alternative sources of financing, such as the Federal Reserve's discount window or Federal Home Loan Banks. The Federal Reserve is still shrinking its balance sheet, and if cracks appear in the funding market, this process could stall and destabilize the banking system. [Extracted from the article]

Capital One's plan to acquire Discover Financial Services prompts a discussion about the benefits and drawbacks of big banks versus smaller institutions. While the Big Four banks dominate conversations, there are over 2,000 insured US-chartered commercial banks and nearly 4,645 federally insured credit unions. The potential merger raises concerns about losing the positive aspects of Discover, such as its customer service. Historical evidence suggests that mergers in the financial industry do not necessarily result in better customer experiences. Additionally, cybersecurity and credit card interest rates are important factors to consider when choosing a bank. Ultimately, consumers should have ample options, and regulators need to ensure this. [Extracted from the article]

The article discusses the potential impact of a future Trump administration on the banking industry, with a focus on regulatory changes. There is cautious optimism among bankers that a friendlier regulatory landscape could lead to reduced expenses, more lending opportunities, and potentially spur M&A activity. However, concerns exist about other factors that could offset these positives, such as potential tariffs and mass deportations impacting the economy negatively. Overall, the industry is cautiously optimistic but acknowledges the uncertainty of the future. [Extracted from the article]

The article focuses on the views of accounting firm Deloitte risk and financial advisory principal Richard Rosenthal on the private credit threat against the banking industry. Topics mentioned include the willingness of nonbanks to involve with loan servicing, the decline in bank lending and assets under management of private credit firms.

The planet won't be dead - the environment will just become inhospitable to human life. Humans still think that climate emergency means that the planet will die if their survival is threatened. With over 1,300 locations across the country, the drug-store chain is the largest print-magazine retailer in Canada. [Extracted from the article]

The article focuses on the struggle of midsize banks with higher interest rates, stricter banking rules, and competition with private credit funds. Factors affecting ratings decline of regional banks include higher funding costs, weaker profitability, lagging capital levels, and risks linked to commercial real estate lending. It reports the plan of the U.S. Federal Reserve and other bank regulators to impose tougher capital requirements on midsize banks.

Japan's financial regulator, the Financial Services Agency (FSA), will investigate the potential risks that banks may face from rising interest rates. This comes as the Bank of Japan is expected to raise rates for the first time since 2007, which could lead to some borrowers struggling to make higher interest payments. The FSA is particularly concerned about highly-leveraged borrowers and real estate loans, including those for leveraged buyouts and non-recourse property lending. The FSA also emphasized the need for banks to be prepared for new risk factors such as social media and digital banking. [Extracted from the article]

The Federal Reserve's vice chair for supervision, Michael Barr, has indicated that the central bank is unlikely to extend its emergency loan program, the Bank Term Funding Program, which was implemented during a regional banking crisis. Barr stated that the program has successfully alleviated stress in the financial system and was designed for emergency situations. The program, which allows banks and credit unions to borrow funds for up to one year, is set to expire on March 11. Barr also mentioned that regulators are considering changes to increase capital requirements for Wall Street's largest banks, taking into account the impact on consumers' access to credit and affordable mortgages. [Extracted from the article]

The article focuses on the current state of the U.S. country bank. The article outlines the challenges country banks are confronting: local loans and discounts are a smaller portion of total assets and earnings are low. In this article, the author suggests how a change in investment policy might allow the country bank to increase its holdings of local paper, improve its earnings power, and retain its important position in the banking structure. The author suggests abandoning the liquidity and marketability theories of bank assets, acquiring local long-term paper, and providing rediscount facilities for farm mortgages. The author advocates that local banks return to local investment, an area where they have knowledge and are competent to judge credit risk.