The Banker Next Door

BND: Strategy Room 9-6-2024

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 216: What is the discount window and how do banks get access?

This episode examines the discount window and answers how banks get access to it? The discount window is a lending facility, which works like a line of credit, that is open to all financial institutions. The main users of the discount window have historically been the “money center banks,” which are made up of the 25 largest banks in the U.S. Most of the smaller banks in the U.S. do not utilize the discount window due to the stigma related to it. We go over the five steps a bank would take to access the discount window. Links to the articles reviewed are included below.  
Link: Five Steps to Discount Window Borrowing (communitybankingconnections.org)
Link: What Is a Discount Window? Why and How Do Banks Use It? (investopedia.com)
Link: Money Center Banks: Meaning, Overview, Role in Economy (investopedia.com)

Episode 215: Customers Bank hit with enforcement action over crypto! (Crypto Series Part IX)

This episode examines recent enforcement actions taken against Customers Bank by the Federal Reserve Bank of Philadelphia for their involvement with cryptocurrency and / or digital assets. The Federal Reserve Bank of Philadelphia found that Customers Bank had deficiencies in their risk management program as it related to BSA and AML compliance. Customers Bank is now under a written agreement and must submit to an independent third-party review of their digital assets business.

Episode 214: How do banks feel about loan growth?

This episode examines the potential for loan growth right now at U.S. banks. We look at the Federal Reserve Senior Loan Officer Survey for July 2024, an article from Bank Director, an Article from S&P Global, and an article from The Business Journals. Banks are not feeling that great about loan growth in the short-term and have tightened up lending standard but feel that demand will improve over the next year as the Fed decreases interest rates. Links to the articles are included below.
Link: More Banks Are Reporting Slowing Loan Growth, Raising Risk Concerns for Directors | Bank Director
Link: The Fed - The July 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices (federalreserve.gov)
Link: Banks tighten lending standards, squeezing small-business owners - The Business Journals (bizjournals.com)

Episode 213: What are Chinese and Japanese Megabanks doing?

This episode examines recent actions and polices with China and Japan’s megabanks as they both struggle with different issues. China has a major real estate problem, and a surging Yen could threaten profits for Japanese banks. China and Japan are the two largest purchasers of U.S. debt, so we must keep an eye on their economies.  

Episode 212: How is the Chinese property market effecting their banks?

This episode examines the current state of the Chinese real estate market. Has a deterioration in property values caused problems for their banks? How is the Chinese government dealing with the issue?  Can we trust the numbers coming out of China?   

Episode 211: Let's check in on CEO salaries!

This episode looks at 2023 CEO pay for banks, financial services, and S&P 500 companies. Jamie Dimon remains in the top spot for banks, but who takes the top spot for financial services and S&P 500 companies? Are CEOs paid too much?  

BND: Strategy Room 8-30-2024

Weekly banking update. Provides financial news and commentary, top stories in the business world, economic indicators, and what is coming up next week.

Episode 210: Interview with Mark Ritter, CEO of MBFS

This episode is an interview with Mark Ritter who is the CEO of Member Business Financial Services (MBFS). MBFS provides support services to Credit Unions such as underwriting, documentation, loan servicing, and SBA loan support. MBFS is considered a “CUSO,” which is a Credit Union Service Organization, meaning that the business entity is owned by credit unions and primarily serves credit unions or members of the CUSO owners or clients. Links to MBFS and Mark’s websites are included below.  
Link: https://www.mbfs.org/
Link: https://markritter.com/

Episode 209: Commercial Real Estate Update

This episode provides an update on the commercial real estate market. Five articles are examined from S&P Global Market Intelligence (subscription required), Bank Director, and PCBB. Topics covered include should banks prepare for potential losses, precautionary measures that banks can take, community bank earnings tested but not crushed by CRE, German bank assets being impacted by U.S. CRE, and the coming CRE maturity wall. Links to the Bank Director and PCBB articles are included below.   
Link: Rising CRE Risks Loom Within the Banking Industry (pcbb.com)
Link: Bracing for a CRE Backlash | Bank Director