Better Markets’ Post

In our latest blog post, Klaros Group partner and co-founder Brian Graham shares his thoughts on the state of banking and stress surrounding commercial real estate. https://lnkd.in/gbWzxTbW

Bank Sales Leaders: Whether you compete head on with Chase or not, you’ll find these takeaways from their recent Investor Day relevant: Jamie Dimon’s cautious pessimism on interest rates; AI in action; why Chase keeps adding branches; and the risks of private credit. Share it with your colleagues. #bankingindustry #banksales

In our latest video, Robert Wessel discusses the key issues facing TD Bank in light of its recent challenges related to anti-money laundering. In particular, Rob identifies four key issues and three possible scenarios concerning where TD Bank stock could go from here. https://lnkd.in/dmJ9Vqqq

Our cash trivia question series is almost over, did you answer the November question correctly? Question: ‘Where will you find the world’s largest bank vault? It was of course, Manhattan, and it belongs to The Federal Reserve Bank of New York! The vault is stored 50 feet below sea level and is believed to hold over 490,000 gold bars. #cashfacts #cashmanagement #dataanalytics #banking

"The bank “failed to surveil billions of instances of trading activity on at least 30 global trading venues,” the OCC alleged. “These gaps … constitute unsafe or unsound banking practices.”" A complex organization, led by celebrity of sorts, Jamie Dimon, is hammered by their regulator for unsafe/unsound banking practices. This headline should have far reaching repercussions both internally and externally. Some may be curious in asking if CEO Dimon will say the failure happened because they grew too fast (RBC CEO McKay said of City National Bank, a bank sanctioned by the OCC). #banks #regulatoryaffairs #losses #reputationalrisk

How safe is your bank from a bank run? We have quarterly FDIC call report data on over 5,000 private and public banks. You can pull any item from any call report from the past 20 years into an Excel model within seconds which makes analyzing banks incredibly efficient. You can pull deposit data and held-to-maturity fair-value data into your models simply by entering the FDIC bank ID. #financialstatementanalysis #bankingindustry #bankruns

Thinking of becoming a deposit taker? Obtaining regulator approval is a long, and rarely straightforward, process. Whether starting a brand new bank, transitioning from the payments space, or setting up a Third Country Branch, there are a variety of challenges you will often face. From pre-app, there are ways to stay on the front foot with regulators, and get the most out of your engagement with them. We can help support you with this. Your overall strategy, business model, RBP and supporting documentation all needs to tell a compelling story, combining how you will add competitiveness in the market and protect consumers, all in a sustainable and viable business model. Our team of former regulators and executives can support you with this. Over the coming weeks I'll be writing a few articles setting out the key challenges, threats and opportunities in the new banks space, and what this says about potential future propositions and applications. Do get in touch with Ewen Fleming or myself if you have any questions.

More and more #Banks will close #Branches to maintain profitability, add efficiency and shore-up losses due in part to the cost centers of Operations. Many will adapt to #SmartATM and #Kiosks. Aegis FinServ Corp™ ATM/Kiosks will see a bump in new location service and replacing large box branches and likely, #layoffs. Law Enforcement & Technology Federal Credit Union and #AegisFS have foreseen these changes two years ago and implemented the enhanced uses of #MobileBanking and #OnlineBanking. The power of banking on your electronics will be realized as branches close. American Bankers Association Florida Bankers Association NCUA https://lnkd.in/eYMkacFX

And, of course, while one The Wall Street Journal article is chronicling the potential for banks to avoid failure based on commercial real estate, another one collapses. It appears that the failure of Republic Bank - PA, NJ, & NY one was caused by the same toxic stew that took down Silicon Valley Bank and others last year, “…paper losses on bonds that lost value as interest rates rose, and high proportions of uninsured deposits that can quickly flee.” #CRE does not appear to be the cause here; so that’s something. Still hoping the Journal is right that we can avoid a CRE triggered banking crisis. https://lnkd.in/gvEUzMHq

It's a long read but very interesting. From my perspective, there is a need to bring capital requirements to an appropriate and consistent level. As mentioned, the US has been one of the most competitive markets, and without accommodation from the regulator, it could go too far and cause damage to itself. I love the emotion of the BASEL Endgame; very creative! It will be interesting to see how the regulations/rules/levels soften and whether this was all part of the negotiating position to go too far, knowing that coming back will get to the originally desired levels. What do you think? #Banking #Capital #BASEL #BASELENDGAME #DBTB