Articles @ Focus Forum
Browse all of the articles published in the newsletter.
- Economic Alphabet Soup
by Kyle Kuster | Issue 034 | October 2008
Among the revised GDP number and the Fed's reports, we see indications of a credit nation that is spending money it does not have. As the last stimulus checks arrive, the final numbers show a 0.5 percent increase in personal income and no change in personal spending. With numbers like these, banks are surely asking, "Where is the money going?"- What it All Means to Community Banks
by Jamie T. Sumner | Issue 034 | October 2008
Over the past several weeks, we have seen a number of news headlines honing in on the fact that companies are dealing with liquidity problems. So much so that the government put together the biggest – and most controversial – bailout plan since the Great Depression in order to get the credit market working and monies flowing freely throughout our economy. The Treasury has even gone as far as guaranteeing money-market mutual funds in an effort to slow the rapid withdrawal of monies from these accounts. There are varying opinions as to what impact this could have on the banking industry. But, I see this as a potential positive for these institutions.- Capital Adequacy. How One Bank is Making it Work.
by Michelle Gula | Issue 034 | October 2008
As the reputational and financial damage from money center and regional banks continues to mount and create fallout for community banks nationwide, Community Bank, N.A., a $4 billion institution headquartered in DeWitt, N.Y., is defying the odds. We checked in with President and CEO Mark Tryniski to see what sort of wizardry (if any) is in the works, and we're sharing what we've found behind the curtain as part of our continuing focus on capital planning.- Do You Get "IT" When It Comes to Hiring IT?
by Megan Sciarrino | Issue 034 | October 2008
You need IT professionals. And you need them to work for you today, tomorrow, and years from now. This includes all the moments in between product launches and target audiences and securitization and disaster planning – all while being a champion for your culture – and gosh – having one foot firmly planted in the strategic camp while the other is still stepping towards technological development.- Dr. Ed Concedes 7th Inning to Jay
by Jay Brew & Dr. Edmond J. Seifried | Issue 033 | September 2008
Those of you who've been following Dr. Ed Seifried's and Jay Brew's economic debate know it's been a real nail-biter. "Jay's recession point of view may have taken the 6th inning of our world series, but," claims Dr. Ed, m.rae chief economist, "I think my prediction has been a home run in the top of the 7th inning!" Dr. Ed is referring to the stronger-than-expected revised GDP data for the second quarter. "GDP growth of 3.3% is simply amazing for an economy under so much tension. This shows the underlying strength of the U.S. economy."- When it Comes to Capital Planning, Don't Just Bank on Stock
by Michelle Gula | Issue 033 | September 2008
When we left this topic in the last Focus Forum issue, we discussed that being well capitalized is on the short list of action items for the OCC, OTS, and the FDIC. Over the first eight months of 2008, we have seen the banking industry post declines in stock prices. And, the reputational and financial damage from money center and regional banks has severely impacted the stock performance of almost every community bank. We expect this overall weak community bank stock performance to continue well into 2009. Therefore, there is a heightened scrutiny on "Where will our capital come from?"- Revolution Evolution - Remote Deposit Capture
by Kyle Kuster | Issue 033 | September 2008
A few years have passed since the revolutionary rules on Check 21 were approved. The law, which "permits banks to truncate original checks, to process check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks," was the beginning of remote deposit capture (RDC). Its original enactment goes on to state that the substitute check created through the RDC process is "the legal equivalent of the original check and includes all the information contained on the original check." This guidance meant that similar to the introduction of the ATM – remote deposit capture was delivering a whole new level of banking. But the underlying question has become, "to whom?"- Divergent Paths Through a Faltering Economy
by Michelle Gula | Issue 033 | September 2008
After visiting so many banks across the country, we've discovered that many are, unfortunately, taking divergent paths through this faltering economy. It is vital for a bank to choose the path that enables them to succeed, but many banks are facing a risk of taking the path of complacency or indifference. We have categorized the diverging paths as "A Cattle Chute," "Sitting Ducks," and "Community Bank Strategist."- Economic Turnaround?
by Frank E. Hassey | Issue 033 | September 2008
Frank Hassey cuts through the numbers to predict an improvement in economic growth in the second half of 2008, including a bottom in the negative housing cycle. This will produce a move by the Fed to raise rates by as much as 50 basis points in the fourth quarter – an action that could produce a volatile bond market characterized by higher intermediate and long-term bond yields.- Q&A: Do We Need a Switch Kit?
by Sharon Tercha | Issue 033 | September 2008
In the age of speed, this user-friendly compilation of forms is a great way to poach customers from the competition. Most banks offer paper versions in branches or as part of a mail promotion, in addition to a downloadable pdf file somewhere on their web site. But, the truly savvy banker is putting it front and center on their institution's home page.