The Banker Next Door

Episode 161: Managing attrition in checking accounts

This episode examines an article from Bank Director titled “Give them a reason to stay: The importance of managing attrition” by Achim Griesel and Sean Payant. The article looks at the attrition rate in bank consumer and business checking accounts. Possible solutions are offered for what banks can do to make sure they are reducing attrition rates and continuing to build with organic growth. A link to the article is listed below.
Link: Give Them a Reason to Stay: The Importance of Managing Attrition | Bank Director

Episode 160: SBA EIDL loans are a mess!

This episode looks at the current state of SBA’s EIDL loans. The amount of charge offs for EIDL loans exploded to $52 billion in 2023. The SBA has stated that about 1.3 million EIDL loans are either past due, delinquent, in liquidation, or charged off. The SBA made a total of 4.1 million EIDL loans over a 3-year period. The SBA now finds itself in a new position as the main creditor of these loans.
Link: SBA Covid EIDL loans in focus in new bankruptcy wave - Philadelphia Business Journal (bizjournals.com)

Episode 159: Saudi Arabia ends petrodollar pact after 50 years!

This episode examines the potential ramifications to the U.S. dollar’s dominance as the world reserve currency if the U.S. pact with Saudi Arabia, known as the petrodollar, comes to an end. There was a surprisingly minimal amount of news this week about Saudi Arabia not renewing the pact. The BRICS nations have a plan to move away from the U.S. dollar and getting Saudi Arabia to use their currencies is major step in that direction.  
Links: Episode 5: BRICS: Podbean – https://joeberq.podbean.com/e/episode-5-brics/, Rumble – https://rumble.com/v3cdgro-episode-5-brics.html?mref=14elvh&mc=5en37, YouTube – https://youtu.be/ZooGp4CHrKE

Episode 158: FDIC state profile, great data tool!

This episode examines the FDIC’s state profile report. This is a 1-page report that is issued by the FDIC on a quarterly basis. Very useful for doing quick bench marking against other banks in your state. It has a nice breakdown between economic indicators, banking trends, and banking profile.  
Link: FDIC: State Profiles

Episode 157: Is Synapse bankruptcy going to destroy the BaaS model?

This episode examines the bankruptcy filing of Synapse and the ensuing disruption it has caused to its partner financial institutions. Currently, $85 million in customer money for over 100,000 customers is missing. The bankruptcy court judge is not sure what the court can do as this is “uncharted territory.” Synapse has laid off all its employees and pointed responsibility back to its financial partners. However, the financial institutions don’t have the customers’ funds and are claiming that Synapse misappropriated them. Perhaps more importantly, regulators are taking a hard look at third-party vendor relationships and the BaaS model.

Episode 156: Banking Update 6-16-2024

This episode provides a weekly update on U.S. banking industry news.
 
Happy Father's Day!

Episode 155: Fed holds interest rates steady

This episode examines the Federal Reserve’s decision to hold interest rates steady the week of June 10-14th. There is now a 58% chance the Fed with reduce interest rates by 25bps at the September meeting. The Fed is only allowing for one interest rate reduction in 2024 and several more for 2025.

Episode 154: Banking Update 6-2-2024

This episode provides a weekly update on U.S. banking industry news.

Episode 153: What is happening with banks in Europe?

This episode looks at several articles detailing certain actions currently being undertaken by banks in the U.K. and Europe. Investors are expecting a surge in bad commercial real estate loans at European banks. U.K. banks expect to hike loan loss provisions in the coming years and German banks are seeking to curtail potential losses from U.S. commercial real estate.

Episode 152: What does a good board of directors look like?

This episode looks at several BID Daily Newsletters from PCBB around bank boards. The first newsletter considers what constitutes a good board of directors. The second newsletter considers age restrictions around board members. A link to both newsletters is below.
Link - The Makings of a Successful Board of Directors (pcbb.com)
Link - The Changing State of Board Age Restrictions (pcbb.com)