Access to capital markets provided for $200 million-$10 billion banks.
By Rob McDonough
Community banks face many struggles in today’s competitive and highly regulated financial services industry, but many do not realize the hardships that smaller financial institutions in particular face when accessing the capital markets. For example, most mom-and-pop banks that issue bonds are unable to justify the expenses charged by agencies like Moody’s, S&P and Fitch to provide a credit rating for their debt. This can scare off many investors, particularly those that are unfamiliar with the community banking space and its risks and rewards. However, recent developments in the capital markets have provided a new and improved approach to effectively direct investor capital to these institutions.
Don’t reinvent the wheel to manage finance, risk and reporting.
By Bart Everaert
Since the Federal Reserve Board approved a proposed rule that aims to reduce a financial institution’s dependency on short-term funding, many have been dealing with finding the best way to implement this new regulation, i.e., the net stable funding ratio. On top of the current liquidity risk requirements, financial institutions will now need to show the regulator they are able to fund themselves over a one-year period, with the end goal of strengthening their organizations overall and making them more resilient to market stress.
June 29 — The Federal Reserve Board and the Federal Reserve Bank of Cleveland have released Browsing to Borrow: “Mom & Pop” Small Business Perspectives on Online Lenders. The report examines small business owners’ perceptions of online lenders and their understanding and interpretation of the information that online lenders use to describe their credit products.
June 21 — Girls Who Invest, a non-profit working to increase the number of women in portfolio management and executive leadership positions in the asset management industry, has partnered with Training the Street, a corporate training provider for Wall Street firms and top business schools.
June 7 — Due to the 2009 CARD Act, credit card fees aren’t quite as widespread as they were a decade ago, but today’s credit cards still carry an average of 4.35 types of fees, and they can range anywhere from one fee to nine fees, depending on card type and issuer. In a study of 200 credit cards used by Americans, LendingTree’s CompareCards found there is a wide variance among the number and types of fees imposed on customers.