News Topic: Interest rate risk

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Under a proposed rule change, credit unions would no longer need to seek pre-approval from the regulator before entering into interest rate swaps, speeding up transactions for some of the industry’s biggest institutions that already hold over 80% of total ... Read full article

The credit union regulator has held back in allowing the use of derivatives but has released a proposal that would remove red tape for some larger institutions. ... Read full article

With multiple business sectors reeling from the pandemic, banks are facing tighter net interest margins, provisioning more for losses and seeing their balance sheets expand, the agency said in a report. ... Read full article

With rates so low — after steep emergency Federal Reserve cuts in response to the pandemic’s fallout — banks will struggle to generate bread-and-butter interest income and asset-sensitive lenders will face substantial net interest margin contraction this ... Read full article

The group that worked with the Fed to devise an alternative rate to Libor rejects criticism that the index favors megabanks. ... Read full article

Some megabanks are pushing New York lawmakers to add a legal safe harbor if lenders use the new Secured Overnight Financing Rate. Smaller banks would have little choice but to take that option. ... Read full article

The Fed’s decision to cut its benchmark interest rate amid growing coronavirus concerns is bound to have an impact on banks, but just how broad and how deep remains to be seen. ... Read full article

Banks' lowering of origination fees and loosening of underwriting standards often foreshadow a downturn. ... Read full article

While his focus is on organic growth in Texas and California, Curt Farmer says he would consider a deal in those states if the right one comes along. ... Read full article

Many lenders are establishing a firm bottom on variable interest rates amid intense competition for commercial credits, rising deposit costs and the possibility that the Fed could take rates to unprecedented lows. ... Read full article

Banks need to more actively manage margins — including the use of new modeling technology — in the current low-interest-rate environment. ... Read full article

Muneera Carr, Comerica's CFO since 2017, will leave in October and James Herzog, who had been the bank's treasurer, will serve as interim CFO until a successor is named. ... Read full article

The bank started buying more Treasurys and mortgage-backeds over a year ago, long before talk about rate cuts. What did it know that its rivals didn't? ... Read full article

The Federal Reserve's monetary policies have exacerbated the wealth gap, making the central bank a vulnerable target for Trump. He’s taking full advantage. ... Read full article

The approach could work as long as the Fed were to add certain thresholds. ... Read full article

KeyCorp, Regions Financial and others have sacrificed short-term profits to avoid being crushed by an anticipated decline in interest rates. ... Read full article

More than 66% of the banks reported a jump in net income during the first quarter but new risks are emerging in interest rates and underwriting, the Federal Deposit Insurance Corp. said Wednesday. ... Read full article