Index provider ICE buys AFX and its Ameribor rate
The financial data firm Intercontinental Exchange is buying the firm that runs the Ameribor interest rate benchmark, which some community and regional banks back as a LIBOR alternative.
Interest rates
Barkin says he prefers Fed keep rates restrictive for longer
The Federal Reserve Bank of Richmond president said while he believes the central bank's current level of rates is restraining the economy enough to continue lowering inflation in 2025, there are still upside risks to inflation and growth.
Inflation proves sticky, clouding Fed policy outlook
Annualized inflation increased to 2.7% in November from 2.6% the previous month, providing further evidence that the economy remains strong despite restrictive monetary policy.
Powell: Fed is in no hurry to lower interest rates
The Federal Reserve chair said there are no economic indicators calling for rapid rate cuts. He also addressed Fed independence, the impact of Trump's economic agenda and more.
Senate Democrats call for another half-point Fed rate cut
Sens. Elizabeth Warren and John Hickenlooper say recent data suggests there is "no need for restrictive interest rates" and easier monetary policy is necessary to lower housing costs.
September headline inflation gives Fed flexibility on raising rates
Core PCE held steady as service costs rose, but the overall report maintains the central bank's flexibility ahead of next week's Federal Open Market Committee meeting.
FDIC cites three Texas banks over risk management, liquidity
The Federal Deposit Insurance Corp. and Texas banking regulators issued consent orders against Industry State Bank, Fayetteville Bank and Citizens State Bank, requiring major overhauls of their management, capital and risk controls.
M&T is feeling ‘really good’ about CRE loans as rates start to fall
The regional bank has already seen a large reduction in "criticized" loans, and it expects that trend to pick up as lower borrowing costs alleviate the pain in the commercial real estate sector.
For community banks, rate cuts present positives and perils
Lower interest rates could bolster loan demand, credit quality and securities portfolios. But they could also curb lending profitability faster than they ease deposit costs, crimping net interest margins and eating into near-term profits.
Mortgage lock volumes trend upward amid market uncertainty
Rate locks have increased every month this year, but May's pace came in more subdued than early-year numbers, according to Mortgage Capital Trading.
Bankers, investors look past shaky near-term conditions and see growth
Bank stocks are up this year as interest rates have leveled off and there are hopes that pressure on lenders' profits could moderate.
Chances of 2024 rate cuts dim by the month
The Federal Open Market Committee held the federal funds rate at current levels, citing "lack of further progress" toward meeting inflation goals.
The Fed is talking, but markets still hear what they want to hear
Banks and other financial market participants have been keyed into the central bank's communications around monetary policy expectations. But in an unpredictable economy, the guidance doesn't always hit the mark.
Navigating the Path Ahead: The Outlook for Mortgage Interest Rates in 2024
Let's delve into the factors shaping the outlook for mortgage interest rates in 2024.
Focus sharpens on rate pressure, credit quality ahead of bank earnings
With high deposit and borrowing costs persisting amid the Federal Reserve's campaign against inflation, lenders face stress on their net interest margins and the potential of troubled loans ticking up.
Credit card issuers’ APR margins hit record 14.3% in 2023, CFPB says
Lenders collected an estimated $25 billion in additional interest income last year by raising the average margin on annual percentage rates, or the amount above the prime rate, according to the Consumer Financial Protection Bureau.
With deposits steady and lending flat, focus shifts to credit quality
Funding pressures moderated in recent months, but loan charge-offs climbed. With festering concerns about a vulnerable economy, the potential for elevated credits costs could loom large over the upcoming bank earnings season.
Powell says Fed will stay the course on quantitative tightening
The Federal Reserve has allowed more than $1 trillion of assets to roll off its balance sheet. Chair Jerome Powell says he doesn't believe reserves in the banking system are nearing a level that would cause the Fed to slow down or stop.
Truist mulls a restructuring of its underwater bond portfolio
The North Carolina-based bank is considering the idea of selling a portion of its securities portfolio as a way to build capital, CEO Bill Rogers said Tuesday. At the end of the third quarter, Truist's securities were worth about 20% less than what the company paid for them.
RIP BSBY: Bloomberg to shut down its lagging Libor replacement
The BSBY interest rate benchmark was originally envisioned as a successor to the once-ubiquitous Libor rate. But it failed to gain much traction, and Bloomberg now plans to shut it down next year.
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