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The San Francisco-based bank, whose stock came under pressure after the failure of Silicon Valley Bank, said the increased borrowing capacity strengthens and diversifies its funding. The bank's "capital and liquidity positions are very strong," executives said. [ABSTRACT FROM AUTHOR]

January 29, 2021 Old National Bancorp in Evansville, Ind., is adding technology to help it assess the creditworthiness of existing and potential clients. Customers Bancorp in Wyomissing, Pa., Modern Bank in New York and PNC Financial Services Group in Pittsburgh are OakNorth's other U.S. customers. [Extracted from the article]

JPMorgan Chase posted record profit in the fourth quarter after a surge in trading and investment banking fees helped its Wall Street unit close out its most profitable year ever. In releasing almost $3 billion of its credit reserves, far more than analysts had predicted, JPMorgan is signaling more optimism about the outlook for the economy. [Extracted from the article]

January 04, 2021 Dawn Garza, a landlord and small-business owner in San Antonio, is hoping to get a second loan from the Paycheck Protection Program to cover her property taxes due at the end of January. The delinquency rate could climb a full percentage point to the mid-2% range in some markets like New York and Chicago, Nichols said, and lenders could be dealing with these problem loans for up to two years. [Extracted from the article]

Credit problems are leading some multibank holding companies to rein in executives at subsidiary banks. GB&T Bancshares Inc. in Gainesville, Ga., which owns seven banks, and Clarkston Financial Corp. in [...]

Fluctuations in the U.S. credit cycle, increasing competition, and the rapid adoption of technology are altering the needs of middle-market and small businesses. Banks in turn are searching for a [...]

With the small-business lending market heating up, demand for the data needed to make credit decisions is growing. But some small-business lenders do not want to replicate the credit bureau [...]

Even as mortgage issuance surges and secondary loan market profits are at decade highs, the industry is under considerable stress. The bottom third of the market for both agency and government loans is essentially being selected out, in part because of the active manipulation of the market by the Fed. Sad to say, while conventional and government loans are experiencing a boom unlike any seen since the early 2000s, jumbo and non-QM markets are not a priority for most lenders given the amount of relatively easy to process agency loans. [Extracted from the article]

September 11, 2020 South State in Winter Haven, Fla., had two powerful levers to pull to help clients weather the coronavirus storm: Paycheck Protection Program loans for small businesses and a regulator-backed approach to loan deferrals. The PPP helped many small businesses survive the summer, and millions of consumers and commercial clients were able to suspend loan payments for at least three months. Despite a festering pandemic that has restrained recovery in a number of markets and industries, the overall economy appears to be slowly healing, the job market is improving, and many once-vulnerable borrowers are again making loan payments. [Extracted from the article]

But Capital One's net charge-off rate for the fourth quarter was 1.38%, down from 2.6% a year earlier. While auto loan originations were down 2% from the fourth quarter of 2019, the net charge-off rate for car loans also plunged from 1.9% to just 0.5%. [Extracted from the article]

The article discusses the results of a February 2010 Financial Services Executive Forum Survey which found loan demand in the United States is weak. Data noted for respondents' assessment of credit standards for the retail/consumer and business/commercial segments is mentioned. The different perspectives of the survey respondents related to the size of institutions such as banks are mentioned.

The article discusses the financial services industry and how the industry has lost consumer trust because of the subprime mortgage crisis. The crisis has brought on foreclosures, tighter credit, and higher interest rates, which have made the branding process more difficult. Institutions such as the Woodforest Financial Group Inc. banks have retained brand value by keeping the same hours as the Wal-Mart Inc. stores in which they operate.

The article discusses how banking companies are continuing to launch branch expansion plans in 2008, but they are being more cautious about where and how they grow. In 2007, the financial service industry had a tough year that included writeoffs, steep profit shortfalls, and worsening credit quality, which has caused companies to pay close attention to their bottom line. The article explains that branch expansion will not end because it is too important in the competitive landscape.

The article looks at the place of third-party originators within the market as the result of deteriorating credit quality. Lenders believe the brokers will regain their position, while others predict a change in their operations in the form of strict legal requirements. Frank Sillman, chief executive of IndyMac Bancorp Inc.'s mortgage unit, comments on mortgage brokers' market share, noting that they were able to maintain a high percentage because they offered rates that were competitive.

The article examines how credit quality has been affecting the merger and acquisition (M&A) market of banks. The article explains that credit costs have been a key factor in pressuring bankers to sell. At the same time, buyers are reportedly concerned about the credit quality of those banks looking to sell. According to the article analysts are still not sure whether credit quality will slow down the M&A rate, which has been on a steady increase since 2006.

The article discusses the importance of credit quality in first quarter results for the banking industry in 2007. An analyst with Goldman Sachs Group Inc., Lori Applebaum, feels that earnings in the first quarter will be focused on credit, but that chargeoffs will be steady or down. Applebaum found that first quarter chargeoffs have dropped from the fourth quarter of the previous year every year since 1986, but in 2007 banks are concerned because of trouble with subprime loans.

The article is about credit quality being United States investors' top concern in 2007. U.S. banks do not believe that weakening credit quality will cause problems this year. A survey of large banking companies reports that executives think that credit costs will normalize in 2007. Financial institutions say that this means banks expect provisions to rise.

November 19, 2020 Bankers are bracing for a wave of loan delinquencies and defaults as forbearances on loans granted at the start of the coronavirus pandemic are set to expire. Given how the dire economic conditions were at the start of the pandemic, Weinstein said he's not surprised banks are somewhat more optimistic about loan demand. [Extracted from the article]

While the largest banks in the country set aside more money for bad loans in the second quarter than analysts and investors had expected, some industry watchers wonder if KeyCorp stashed away enough. "What would drive an increase in reserves would be growing our loan book or a change in our forward view of the economy or a downward credit migration", Gorman said in an interview after the earnings call. [Extracted from the article]

The coronavirus outbreak has scuttled the largest-ever credit union acquisition of a bank. The Suncoast-Apollo deal capped a record year for credit union-bank mergers. [Extracted from the article]

WASHINGTON - The Federal Reserve announced a slew of actions Thursday to provide up to $2.3 trillion in loans to ensure the smooth flow of credit to businesses as the economic effects of the coronavirus become increasingly visible. The Fed is also creating a Municipal Liquidity Facility to support state and local governments with up to $500 billion in lending, and is expanding its already-announced Primary and Secondary Market Corporate Credit Facilities, each of which will now support up to $850 billion in credit. [Extracted from the article]

The agencies said on Tuesday that, starting Friday, borrowers can request loans under the $349 billion Payroll Protection Program using any SBA 7(a)-approved lender, bank, credit union or farm credit administration institution. But the CARES Act allows Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza to open the program to other lenders with "the necessary qualifications to process, close, disburse and service loans.". [Extracted from the article]

Federal Reserve policymakers took drastic action to counter fallout from the coronavirus pandemic, slashing interest rates to near zero over the weekend after an emergency 50 basis-point cut earlier this month. The March cuts followed Fed policymakers' moves to lower their benchmark rate three times in 2019. What banks need in order to lend to these companies are more government loan guarantees, including an expansion of the federal Small Business Administration lending program. [Extracted from the article]

The latest high-level hire at Social Finance is a former Jeff Bezos deputy who will oversee the San Francisco firm's deposit, credit card and brokerage units. Maria Renz, who spent 21 years at Amazon, joined SoFi on Wednesday as an executive vice president and group business unit leader. [Extracted from the article]

WASHINGTON - Senate Democrats are calling on regulators to provide financial institutions with guidance on assisting consumers affected by the coronavirus outbreak. "No one should be penalized financially or suffer financial duress for following [Centers for Disease Control and Prevention] guidance", the senators wrote Monday in a letter to six federal agencies and the trade association for state banking regulators. [Extracted from the article]

With numerous banks, credit card issuers and personal finance sites allowing consumers to check their credit scores for free, these three-digit ratings are no longer as elusive as when the credit education site Credit Sesame launched eight years ago. Founder and CEO Adrian Nazari said 84% of Credit Sesame's approximately 15 million registered members live paycheck to paycheck and rely on the funds they have on hand to make financial decisions. To start, the banking service will analyze a consumer's cash and repayment ability against their credit and recommend lower-cost credit cards and loans. [Extracted from the article]

Only one credit union has announced a bank acquisition deal: Wings Financial Credit Union agreed this month to buy Neighborhood National Bank in Mora, Minn. Deal talks between banks and credit unions continue, and another announcement is likely to come soon in a state that has yet to have a credit union-bank deal, said Michael Bell, a lawyer at Howard & Howard who advises credit unions. The ruling - believed to be the first time a state regulator blocked a credit union-bank deal - relied on a specific Colorado statute that bars mergers between different types of financial institutions. [Extracted from the article]

Intuit, owner of the personal financial software Mint and several accounting software packages including QuickBooks and TurboTax, has agreed to buy Credit Karma for $7.1 billion. "Intuit could easily provide a simple, free version of Mint or TurboTax to Credit Karma customers, and thereby capture both behavioral and transactional data on identified consumers", Baker said. [Extracted from the article]

How Nova Credit caught the eye - and dollars - of A-listers Nova Credit, a fintech company that translates other countries' credit bureau information into data American banks' underwriting systems can understand, has raised $50 million in funding from an A-list mix of venture firms and celebrities. Nova Credit makes money through its contracts with banks, card issuers, telecom firms and other enterprises. [Extracted from the article]

Despite the backing of several large investors, Credit Suisse CEO Tidjane Thiam lost the boardroom battle with chairman Urs Rohner, tendering his resignation on Friday. "More than 8,700 free ATMs have closed since the beginning of 2018 following a cut in the fees paid by banks to third-party cash machine operators, which left many ATMs no longer economically viable. [Extracted from the article]

Three of Credit Suisse's largest investors are calling on Chairman Urs Rohner to publicly support CEO Tidjane Thiam or resign, "as a scandal over the surveillance of executives threatens to split the bank's leadership", the Wall Street Journal reports. "HSBC has decided not to name a permanent chief executive when it unveils a strategic overhaul this month, in a move that risks undermining investor confidence in the plan to reshape the lender dramatically", the paper reports. [Extracted from the article]

The online small-business lender Kabbage said Tuesday that it will begin offering short-term loans to its clients that can be repaid in as little three days. Through Kabbage Payments, small businesses create and send invoices to customers and create a URL through which they accept card payments through Kabbage for a 2.25% per-transaction fee. Custom loan clients can either repay in full when the loan reaches maturity or allocate up to 100% of their Kabbage Payments revenue toward the balance over the selected period. [Extracted from the article]

Hanmi Financial in Los Angeles is dealing with a large problem loan that overshadowed efforts to grow its balance sheet. The $5.5 billion-asset company reported on Tuesday that it recorded a $6.9 million specific loan-loss provision in the fourth quarter tied to a deteriorating credit. [Extracted from the article]

Shares of Discover Financial Services slumped the most in more than a decade after credit card lender warned that it will spend more on marketing and technology, including to beef up collections on troubled debt. In the past, those customers had to call Discover to qualify, but the lender has now made it part of its online and mobile banking capabilities. [Extracted from the article]

Since 2010, the total number of banks and credit unions in the United States has dropped by an astounding 31% to only 10,537 financial institutions left. First, while credit unions have grown slightly over the past decades - a 2% increase in market share from 1992 to 2018 - it is the big banks that are devouring community banks. But to opponents of credit union-bank mergers, it appears they would rather have the branches, lending capacity and economic benefits abruptly exit the community than be serviced by a credit union. [Extracted from the article]

The Colorado Bankers Association has asked state regulators to put a halt to a credit union's deal to buy a bank. While bank groups have spoken out often in the last year regarding credit union-bank deals, this is believed to be the first time a state trade group has publicly asked regulators to put the kibosh on a sale. [Extracted from the article]

One of JPMorgan Chase's most senior credit traders, Edward Koo, has become the latest member of the industry swept up in concern over the messaging app. Known as one of the bank's main traders of credit-default swaps tied to individual companies, Koo had been getting an expanded mandate. [Extracted from the article]

The article looks at the credit cycle and whether secondary markets act as a mask or buffer. According to the article, a decline in the credit cycle is inevitable. The article discusses two competing theories. One states that structural changes in the credit markets have made the downturn more manageable for financial institutions. The other argues that these structural changes are less than advertised, and that current levels of nonperforming assets are masking credit problems.

The latest proposal, however, would limit this 5% deposit rule to banks with more than half their deposits from outside their current "assessment area", and not require any commensurate CRA benefit. While that bank may deserve its outstanding CRA rating for its performance in the Salt Lake City area, this is certainly not the case for other large MSAs, like Miami and others, being targeted by these banks and getting little to nothing in return for helping finance credit card operations. The nation's forgotten cities deserve a fair share of CRA benefits from banks targeting them for deposit funding. [Extracted from the article]

Loan growth took off in the wake of the Great Recession, when interest rates hovered close to record lows and banks were choosing their borrowers carefully. LendingClub isn't alone: Competitor Prosper Marketplace told investors this month that its borrowers in 2019 have the highest credit scores and income, and lowest debt-to-income ratios, in at least six years. The group said in a report this month that total loan balances for borrowers with subprime scores remain well below pre-crisis levels, which it attributed partly to "somewhat tight" credit availability for higher-risk borrowers. [Extracted from the article]

For a bank the size of JPMorgan Chase or Bank of America, being just one point into the next bucket could translate into a sudden $5 billion or $10 billion jump in capital that the bank is required to have". Westpac's bid to supply mortgage loans to an Australian government home-deposit assistance program is likely to be rejected following a major payments scandal that has already cost the bank its CEO and chairman. [Extracted from the article]

Several community banks issued warnings about potentially suspect loans in the third quarter, using a variety of terms to characterize areas of concern. The $3.8 billion-asset Franklin said during its third-quarter earnings call that classified assets rose to 1.77% of loans held for investment on Sept. 30 from 1.45% a quarter earlier. Health care loans still account for roughly a tenth of Franklin's total loan portfolio, said Laurie Havener Hunsicker, an analyst at Compass Point. [Extracted from the article]

"We're actually looking at their business every day, analyzing their data every second to be able to underwrite and facilitate loans", Reses said, referring to the payment information Square collects from its merchant customers. The same day that Reses spoke, HSBC announced it is white-labeling Biz2Credit's online lending platform for small businesses, and Fifth Third Bank said it has deployed Fundation's small-business loan origination platform. [Extracted from the article]

Higher education and transparency in lending are critical to understanding the opportunities and risks of borrowing money. ACT's findings were consistent with a recent survey by College Ave Student Loans that found nearly 70% of students did not know what the monthly amount due on their first student loan bill. Most recently, 37 House Republicans and Democrats have sponsored the Student Loan Disclosure Transparency Act, which requires notification to students - before they take out a federal loan and every month thereafter - the amount of debt accumulated each year, the monthly payments, repayment options, the number of years for repayment and how much they will owe in total. [Extracted from the article]