The Banker Next Door

Review of FDIC report on bank lending to nondepository financial institutions (NDFIs)

As the consternation on Wall Street around the Private Credit market continues, we examine bank lending to NDFIs. This has been banks largest and fastest-growing loan segment since 2010. The compound growth rate from 2010 to 2024 is 21.9%, almost three times as high as the next segment, which is multifamily CRE. NDFI lending has increased from $56B in 2010 to $1.32 trillion in 2025! NDFI lending as a percentage of Tier 1 capital rose from 4.1% in 2010 to 52.3% in 2025. The largest financial institutions have the highest concentration of NDFI loans. Starting in December of 2024, the Call Report filings were changed to require additional reporting on NDFI lending. These changes include the addition of five subcategories. Lending to NDFIs poses substantial risk to banks as the credit decisions, credit administration, and collateral valuations fall outside the direct control of Banks (Ex: Tricolor Holdings and First Brands). This episode reviews the FDIC report on bank lending to Nondepository Financial Institutions and an article from S&P Global (subscription required) titled “US banks’ NDFI lending pace reaccelerates in Q4 2025.” A link to the FDIC report is included below.  
Link: Bank Lending to Nondepository Financial Institutions

Review of FDIC Quarterly Banking Profile for 4Q of 2025

The U.S. banking industry had solid performance in the 4Q of 2025 according to the FDIC. ROA and Net Income improved significantly from 2024, Net Interest Margin improved to 3.39%, loan growth continued to expand up 5.9%, domestic deposits increased for a sixth straight quarter, and asset quality metrics remained generally favorable, but some weakness is beginning to show. Unrealized losses on securities decreased both quarterly and annually. The Deposit Insurance Fund Reserve Ratio increased to 1.42%. The FDIC Quarterly Banking Profile breaks down the financial performance of the U.S. banking industry and highlights community bank performance and the Deposit Insurance Fund (DIF) performance. A link to the report is included below.
Link:  https://www.fdic.gov/quarterly-banking-profile/quarterly-banking-profile-fourth-quarter-2025.pdf

Jane Street sued, Binance investigation, and Crypto legislation update (Crypto Series Part XXXVII)

This is part 37 of the crypto series. In this episode we examine the lawsuit filed against Jane Street alleging that the trading firm used insider knowledge to profit from the demise of Terraform Labs. Did Jane Street cause the Crypto Winter of 2022? Binance fired staff that were investigating the movement of $1 billion dollars through the platform to Iran-backed terror groups. Crypto firms think they can buy their way into banking by getting a bank charter. Senator Warren grills Jonathan Gould over World Liberty charter application. Circle’s fourth quarter profit for 2025 surges. Meta is looking to get back into crypto. Legislators seem to be at an impasse with the Clarity Act. The OCC issued their proposed rule on the Genius Act. This episode reviewed multiple articles from Investopedia, Banking Dive, The OCC, and The Wall Street Journal.

BND: Strategy Room Bonus - Did Jane Street destroy Terraform Labs?

This video is a clip from BND: Strategy Room Live Stream on February 28, 2026. Jane Street is being sued by the trust administrator for Terraform Labs. The suit alleges that the company engaged in insider trading to profit unlawfully and ultimately caused the collapse of Terraform Labs. Did the actions of Jane Street cause the destruction of Terraform Labs and thus cause the Crypto Winter of 2022? Terraform Labs was the issuer of TerraUSD, one of the largest stablecoins at the time, and a sister token called Luna. Terraform Labs collapsed in 2022 and declared bankruptcy in 2024. The founder of the company Du Kwon is currently in prison serving a 15-year sentence after pleading guilty to two criminal counts.  

BND: Strategy Room 2-28-2026

The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.

Can banks use Amazon's strategy to attract deposits from Gen Z and Millennials?

Checking accounts have become a commoditized product for banks. How can banks unlock a value creating growth engine and protect market share from new competitors such as neobanks? Using the Amazon strategy of bundling products through a subscription service feature might be the answer. Amazon is currently offering a checking account bundled with additional service for a monthly fee. Based on research conducted by Cornerstone Advisors, 37% of young millennials and 46% of old millennials would ditch their current bank to move to amazon. There is a willingness on the part of consumers to pay for a bundled checking account. However, it falls on Banks to create a value proposition for customers. Furthermore, Banks are really counting on Gen Z and millennials for growing deposits in 2026, but what are they looking for in a financial institution? This episode reviewed an article from Bank Director titled “Taking a page from Amazon’s playbook” and a blog post from PCBB titled “Deposit growth rebounds in 2026 – Led by younger generations.” Links to the article and blog post are included below.
Link: Taking a Page From Amazon’s Playbook | Bank Director
Link: Deposit Growth Rebounds in 2026 — Led by Younger Generations

Can the STARC framework help banks to better evaluate fintech partners?

Vetting and assessing fintech partners can be a difficult task for community banks. In seeking a framework to assist community banks in this effort, a new organization called the Coalition for Financial Ecosystem Standards (CFES) was created in March of 2025. CFES has now rolled out the Standardized Assessment for Risk Management & Compliance or STARC framework. STARC can certify that a fintech has achieved dozens of measurable standards in core compliance areas ranging from BSA/AML to compliance management systems, operational risk, and compliant handling. Community bank relationships and usage of fintech’s are only going to grow in the future. Having a framework that provides more confidence around the vetting and assessment of fintech’s, before you sign a contract, is a major plus. Afterall, no community bank wants to end up in the regulatory penalty box because of poor vendor management due diligence. This episode reviewed an article from Independent Banker Magazine titled “STARC Framework for Bank-Fintech Risk Management.” A link to the article is included below.
Link: STARC Framework for Bank-Fintech Risk Management - Independent Banker - ICBA.org

Female Power: A look at the 154 billionaire women in the U.S.

This one is for the ladies! There are now 154 billionaire women in the U.S. These women have a comparable median net worth to the men of around $2 billion. While 154 billionaire women is a smaller number than the 981 male billionaires in the U.S., there numbers are growing. How did these women amass their fortunes? Most of the money was inherited but the number of self-made entrepreneurs is growing. The article goes through four main categories – Heiresses, CEOs & entrepreneurs, philanthropic ex-wives & widows, and young entertainers. This episode reviewed an article from The Wall Street Journal (subscription required) titled “There are 154 billionaire women in the U.S. Here’s how they amassed their fortunes.”  

Prediction Markets: Gambling and trading blur together and the sports betting zero-sum game

The conversation around Prediction Markets continues as the CFTC is ready to go to court and fight states over who has jurisdiction when it comes to enforcement and regulation. In addition, we look at why options traders are moving to Prediction Markets. The blurring of the lines between trading and gambling continue. Finally, we consider how sports betting is a zero-sum game. What does this ultimately do to the young men that are fueling all the action? This episode reviewed articles from The Epoch Times, The Wall Street Journal, CNBC, and Investopedia. This episode continues a conversation around Prediction Markets. Please check out related episodes – The rise of Prediction Markets! And Are Prediction Markets trading or gambling?

SCOTUS tariff fallout continues!

As the fallout from SCOTUS’ decision on tariffs continues, we consider five takeaways. 1) Tariffs are not authorized under the IEEPA, but all other tariffs are okay. 2) The refund process is likely going to be a mess. 3) The Trump administration is already looking at existing tariff laws to keep the current tariffs deals in place. 4) In justice Kavanaugh’s dissenting opinion he stated that other laws probably would allow for Trump’s tariffs. 5) Justices disagree over how to apply “the major questions doctrine.” Furthermore, we review several tariff related charts and economic information. Finally, we look at some of the big corporations that will be seeking refunds. This episode reviewed multiple articles from The Epoch Times and The Wall Street Journal (subscriptions required).