The United States needs a new, 21st century model for identifying, monitoring and reporting risk at banks. The model must be forward-looking, not backward-looking as the CAMELS ratings are.
With a litany of bipartisan reasons to oppose FATCA, ranging from privacy and sovereignty to U.S. economic competitiveness, it is startling that the legislation has advanced as far as it has.
The gradual erosion of net interest margins and a compensatory shift toward risky new lending strategies for additional yield is a major factor for high chargeoffs and community bank failures.
Some banks may be getting reckless with the pricing and terms they're offering commercial borrowers. The trend should temper enthusiasm for otherwise welcome signs of growth.
