Regulatory scrutiny has shifted directly to capital this year, and every community bank must produce a capital plan that is thorough and realistic. Regulators are specifically looking at minimum capital targets. They do not want to see regulatory minimums. They want to see minimums set that are in line with the bank's unique risk profile.
Over the last two months, we have been delving into Georgian Bank, which failed in September of 2009. The postscript of this story is about board responsibility and oversight. This time period has led to heightened risk awareness and increased focus on the role of the board.
At a time like this, there are many concerns about moving forward. Just a reminder: What will make community banks profitable post-financial crisis is the exact thing that will sustain performance post-crisis.
The thought of a double-dip recession continues to fascinate the media. The housing numbers and some slowing of manufacturing numbers have stoked the fire. Do these numbers in isolation send a message of impending recession?