On January 1, 2020, the Current Expected Credit Losses rule, or CECL, was imposed, which includes new guidelines for taking provisions for anticipated future loan losses. These guidelines require lenders to anticipate the losses today that they expect to incur on current borrowings in the future. As effects of the…
Rising German 10-Year yields, historically, have been the best indication of absolute performance of U.S. bank stock prices. Chart I Recently, the German 10-year yield declined to levels below -0.62%. Historically, low spikes in this yield led to a reversal, such as on 6/30/2016, 8/30/2019 and late March in 2020. Each…
Covid-19 and a second quarter 2020 short-term recession have created potential risk in the banking system. Reports on bank financial conditions to be released in November (2020Q3) will further detail this risk. Subscribe to IDC Financial Publishing’s online portal to receive updates. Out of the 1,839 institutions with brokered deposits, we…
Credit unions have grown to become a major factor in the U.S. economy, with assets that have grown at nearly twice the pace of banks’ over the past decade.1 Credit unions are owned by their members and are designed to offer lower borrowing costs and higher deposit rates. In addition, the…
The Number of Financial Institutions Issuing Brokered CDs Temporarily Declines The number of institutions issuing brokered CDs grew significantly in 2018 and 2019. Banks, savings institutions, and credit unions rose from a plateau of 961 in 2017 and increased to a peak of 1,356 in the 2nd quarter of 2019. The…
