All items from BankThink

A recap of the informed opinions (and the discussions they generated) on BankThink this week.



From BankThink
Posted 4 hours 55 min ago

Instead of trying to stop companies from offering payday loans and check cashing services to lower-income households, we should encourage more competitors Â-- including banks Â-- to enter this space.



From BankThink
Posted 8 hours 7 min ago

Receiving Wide Coverage ... Prepping for Stress Tests: The Financial Times and Wall Street Journal each serves up a curtain raiser on next year's Fed-conducted stress tests, playing off the instructions the Fed released on Thursday, as well as the European Central Bank's stress test results that are due to be released on Sunday. Among the stressful scenarios to which U.S. banks will be theoretically tested are oil prices rising to $110 per barrel, and increasedÂ...



From BankThink
Posted 9 hours 51 min ago

Small banks and credit unions should work together to put pressure on legislators and regulators to reduce unnecessary and cumbersome regulations.



From BankThink
Posted 1 day 6 hours ago

The Volcker Rule's data-intensive requirements are creating headaches for banks that still rely on manual processes and use multiple, disparate systems for securities and different derivatives trading.



From BankThink
Posted 1 day 8 hours ago

Receiving Wide Coverage ...

New Mortgage Rules: Two Republicans on the Securities and Exchange Commission objected to relaxed mortgage rules, but the SEC approved the new rules regardless on Wednesday, as did the Federal Reserve and the Department of Housing and Urban Development. "Today's rule-making takes the untenable housing policy that injected irrational exuberance into mortgage lending and, as a result, caused a catastrophic financial crisis and chisels that failed policy into the stone tablets of...



From BankThink
Posted 1 day 9 hours ago

Apple Pay is a watershed moment that will do more to stimulate mobile commerce than the sum of all previous efforts. But it also has an impact on branding that should make it part of a broader mobile menu for banks and retailers.



From BankThink
Posted 2 days 6 hours ago

Some banks try to justify tight underwriting standards by arguing that borrowers with lower credit scores and those who can only afford lower down payments are more likely to default. But the research supporting this argument is based on outdated analysis of high-cost, risky loans.



From BankThink
Posted 2 days 8 hours ago

Receiving Wide Coverage ...

New QRM Rule Assessed: The reviews are coming in on the final QRM rule and reaction is mixed. The American Bankers Association indicated it could live with the new rule, which doesn't require a down payment in its criteria for being exempted from risk retention, saying it "might have been more restrictive." Former FDIC Chairman Sheila Bair, however, described the final version of the risk retention rule as "unfortunate" because "if the...



From BankThink
Posted 2 days 8 hours ago

The Community Reinvestment Act is often used as a tool to address a broad range of social problems. But the lawÂ's expanded purpose may distract banks from their primary mission of direct lending to low- and moderate-income communities.



From BankThink
Posted 3 days 6 hours ago