Interest rate risk

NCUA’s derivatives rule could be boon for large credit unions


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 assets.


NCUA moves to loosen derivatives rule for credit unions


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.


Rocky road ahead for bank profitability: OCC


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.


Margin pressure could dog banks into 2022


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 year and next, analysts say.


The case for industrywide use of SOFR


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


Libor alternative isn't a one-size-fits-all benchmark


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.


Rate cut could prompt even tighter margins, mortgage surge


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.


Big mortgage lenders are flirting with disaster


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


Comerica CEO won’t rule out acquisitions


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.