The Banker Next Door

Episode 233: U.S. banks looking to lower CD rates!

This episode examines several articles from S&P Global (subscription required) looking at recent growth in bank deposits and banks interest in lowering CD rates as the Fed has moved into an interest rate reduction cycle. Banks would like to quickly reduce CD rates to lower their cost of funds. However, will consumers go along with this?

Episode 232: Let's talk about 'buy now, pay later' products!

This episode examines a recently published Frequently Asked Questions (FAQ) report from the Consumer Financial Protection Bureau (CFPB) on ‘Buy Now, Pay Later’ products. The FAQ provides a general overview of BNPL and explains ‘Pay-in-Four’ BNPL loans. A link to the FAQ on the CFPB website is included below.   
Link: Buy Now, Pay Later Product FAQs | Consumer Financial Protection Bureau (consumerfinance.gov)

Episode 231: How did Fannie Mae and Freddie Mac end up in conservatorship?

This episode focuses on the history of Fannie Mae and Freddie Mac. How did these organizations start and evolve over the years? What scandals were they involved in before the financial crisis? What was their role during the financial crisis of 2007-2009? What are the arguments for and against privatization? Finally, what is happening now?  
Link: Fannie Mae and Freddie Mac: An Overview (investopedia.com)

Episode 230: SBA Update

This episode provides an update on the Small Business Administration (SBA) and the programs it offers. The SBA has rolled out a new 7(a) Working Capital Pilot Program, which is a line of credit up to $5 million. The SBA is seeking out new lenders to work with in an attempt to expand access to their various loan programs. Finally, borrowers that utilized the SBA EIDL loan program continue to struggle with their debt loads.  
Link: The SBA’s New Working Capital Pilot Program Launches Today (pcbb.com)
Link: SBA to issue more Small Business Lending Co. licenses - The Business Journals (bizjournals.com)
Link: Small businesses that took SBA Covid-19 EIDL loans are struggling - The Business Journals (bizjournals.com)
Link: From Short-Term Relief to Long-Term Hardship: Some Small Businesses Struggle with Debt Burdens from COVID-19 Economic Injury Disaster Loans (fedsmallbusiness.org)

Episode 229: Interview with SBA lender Paul Avery

This episode is an interview with Paul Avery, who is an SVP SBA lender with Meridian Bank. Paul and I go through the various SBA loan programs. We discussed 504 loans, 7(a), Express, Export, and Microloans. We spent some time discussing the ins and outs of the 7(a) loan. Namely, how long is the process, what documents are required, can closing costs be rolled in, what approvals are needed from the bank and SBA, and why an attorney is typically used for preparing loan documents and caring out the settlement. Below is a link to a chart covering all the SBA loan programs. 
Link: North_Carolina_Loan_Chart_10-2019-Final.pdf (sba.gov)

BND: Strategy Room 9-20-2024

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.

Episode 228: What should bank board members be reading?

This episode looks at eight different books that bank board members should be reading. If you are thinking about joining a bank board, have recently joined a bank board, or even if you are a veteran board member, you should check out this list!

Episode 227: Is the Fed's 2% inflation target a good mandate?

This episode examines the Fed’s 2% inflation target. First, does it make sense as a good target? Second, is it good or bad that the Fed is going to decrease rates? Third, why is the Fed always praised for fixing the problems they create?  

Episode 226: Basel III Endgame Update!

This episode looks at multiple articles providing an update on the proposed legislation known as the Basel III Endgame. This legislation is looking to dramatically increase the amount of capital being held at the largest financial institutions, not only in the U.S. but in the U.K. and Europe. The legislation was introduced in July of 2023 and received major backlash from banks, trade groups, and politicians. The new proposal appears to be a major compromise. Will this get approved in Congress and when?

Episode 225: How can your bank improve digital lending?

This episode reviews a recent blog post form PCBB titled “5 tips to improve your digital lending efforts.” PCBB reviewed the Digital Banking Report 2024 on the state of digital lending in banks. Some of the key findings reviewed: types of credit that can be initiated online vs mobile, the end-to-end digital process, branch visits, time to complete an application, and restarting an interrupted application. In addition, PCBB provides 5 tips on ways that banks can improve their digital lending experience. Links to the blog post and the 2024 State of Digital Lending report are included below.
Link: 5 Tips To Improve Your Digital Lending Efforts (pcbb.com)
Link: 2024 State of Digital Lending - Digital Banking Report