In-depth: can FASB get loan loss accounting just right?
The Financial Accounting Standards Board (FASB) recently released a proposal that would change the way financial institutions set aside funds to cover losses on loans, debt securities and other assets. Under current accounting rules, the allowance for loan and lease losses is based on incurred losses; the new model, if adopted, would require the allowance to be established for losses expected over the life of the loan based on current and future economic conditions, historical losses, and other factors.
Asset quality: are we there yet?
The largest national banks apparently have turned the corner on asset quality issues, but this improving trend has not yet emerging across the Eighth District.
Agriculture banks are outperforming their peers, but how long will it last?
With soaring commodity prices and farmland values in recent years, banks with an agricultural focus (where at least 25 percent of total loans are production and farmland loans) have outperformed their community bank peers. Find out what risks agriculture banks may face.
The drought's impact on Eighth District agricultural conditions
Despite historic drought conditions, crop producers and lenders in Eighth District states appear likely to exit the year in satisfactory financial condition, but the situation is somewhat different for livestock producers.
What are the challenges that banks face to raise capital?
Investors remain available for offensive capital-raising but are scarce for defensive capital-raising.>
2013 Community Banking Performance: A Year of Recovery
Agriculture Boom Continued 2013
U.S. agriculture has been booming in recent years with record farm incomes and double-digit percentage increases in cropland prices. However, farm income projections suggest a flattening, if not a reversal, of these trends. 2013 may prove to be a peak year, as analysts expect the agriculture sector to experience lower commodity prices, normal crop production and lower farm income over the next several years.
Trends in OREO: community banks still have a long way to go
Since the third quarter of 2011, OREO levels at community banks in the District and nationwide have declined. However, the current volume of these properties is much higher than what it was before the start of the financial crisis, indicating that such banks have a long way to go before OREO levels return to what they were before the financial crisis.
The demographics of decline in small-business lending
Outstanding loan volume at commercial banks declined 2.2 percent between June 2008 and June 2009.
What if debit card transactions exchanged at par?
Under a mandate from the Dodd-Frank Act, the Federal Reserve proposed standards for determining whether debit card interchange fees are ?reasonable and proportional? to the cost of the transaction.