[TE Article Summary] 1st June '17, Relief rally - America's Community banks hope for lighter regulations
http://www.economist.com/news/finance-and-economics/21722893-other-challenges-include-technology-staff-retention-succession-planning-and-thin
Relief rally
America's Community banks hope for lighter regulation
Other challenges include technology, staff retention, succession planning, and thin margins
Print edition; Finance and Economics
June 1st, 2017, Washington DC
Summary by paragraph
1. Standard Financial merged with Allegheny Valley Bancorp because of rising regulation cost.
2. 5,400 community banks, local lenders, chiefly funded by deposits, delicately customized on individual customers and services account for 92% of federally insured banks though they have small size (even smaller than $100m) making only 16% of all loans while providing 43# of small-business loans.
3. The number has declined for a long time, by more than 400 between 2008 and 2012 by merging with another.
4. Despite their small sizes, they are practiced lobbyists forming a group, Independent Community Bankers of America (ICBA).
5. Mortgages regulations that require borrowers sign and initial their agreement in well over 30 places are one of the biggest complaints of community bankers.
6. Bankers make no longer such loans out of fear potential sues from borrowers about loans which do not fit the government's template.
7. Despite the difficulties, their business model has held up pretty well with loan books growth of 7.7% more than twice the rate of bigger lenders, net income growth of 10.4$ compared to the average of 12.7%, and ROE of 9.2% little below the average.
8. Fixed cost of regulation on information technology, of which two channels are online services and cyber-security, are heavier on small banks.
9. Another concern of theirs is to whom they succeed the assets.
10. Keeping capable staff and declining margins are another problems.
11. heavy handed regulations after the crisis and declines in P/B ratio are what contributes to mergers rather than opening new ones.
12. The bankers are lobbying hard the government for lighter regulations.
words and expressions
1. turf: an area regarded as someone's personal territory; one' home ground
2. Lilliputian: a trivial or very small person or thing
3. Brobdingnag: a fictional land occupied by giants
4. paucity: the presence of something in small or insufficient quantity or amount; scarcity
5. heavy-handed: clumsy or insensitive
6. trickle: flow in a small stream; a small flow of liquid
Relief rally
America's Community banks hope for lighter regulation
Other challenges include technology, staff retention, succession planning, and thin margins
Print edition; Finance and Economics
June 1st, 2017, Washington DC
Summary by paragraph
1. Standard Financial merged with Allegheny Valley Bancorp because of rising regulation cost.
2. 5,400 community banks, local lenders, chiefly funded by deposits, delicately customized on individual customers and services account for 92% of federally insured banks though they have small size (even smaller than $100m) making only 16% of all loans while providing 43# of small-business loans.
3. The number has declined for a long time, by more than 400 between 2008 and 2012 by merging with another.
4. Despite their small sizes, they are practiced lobbyists forming a group, Independent Community Bankers of America (ICBA).
5. Mortgages regulations that require borrowers sign and initial their agreement in well over 30 places are one of the biggest complaints of community bankers.
6. Bankers make no longer such loans out of fear potential sues from borrowers about loans which do not fit the government's template.
7. Despite the difficulties, their business model has held up pretty well with loan books growth of 7.7% more than twice the rate of bigger lenders, net income growth of 10.4$ compared to the average of 12.7%, and ROE of 9.2% little below the average.
8. Fixed cost of regulation on information technology, of which two channels are online services and cyber-security, are heavier on small banks.
9. Another concern of theirs is to whom they succeed the assets.
10. Keeping capable staff and declining margins are another problems.
11. heavy handed regulations after the crisis and declines in P/B ratio are what contributes to mergers rather than opening new ones.
12. The bankers are lobbying hard the government for lighter regulations.
words and expressions
1. turf: an area regarded as someone's personal territory; one' home ground
2. Lilliputian: a trivial or very small person or thing
3. Brobdingnag: a fictional land occupied by giants
4. paucity: the presence of something in small or insufficient quantity or amount; scarcity
5. heavy-handed: clumsy or insensitive
6. trickle: flow in a small stream; a small flow of liquid
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