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Managing Stagflation Credit Risk in Banking – Part III

South State Correspondent

In this article, we analyze why 75% LTV may not protect banks from credit risk on commercial loans and why there is only one source of loan repayment. . We concluded that obligors showing less than 1.50X DSCR would be most at risk, but the average community bank underwrites to 1.20X DSCR. Background.

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Use Our ERC Assist Program to Raise Deposits

South State Correspondent

The need for a known, reliable brand creates an excellent opportunity for community banks to help small business customers while building deposit balances. This article breaks down how you can use the ERC Assist product to generate deposits in an innovative way. In 2020, the U.S. million in value over a three-year average life.

Taxes 195
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Big Tech Compliance Tracker: Apple, Google, Amazon Boost UK Fees To Cover New Digital Tax; Amazon Gets FAA’s OK For Drone Delivery 

PYMNTS

Big Tech Updates Fees to Reflect UK Digital Services Tax. Apple announced upcoming tax changes for apps and in-app purchases to include tax law changes in the U.K. digital services tax on to consumers in addition to an existing 20 percent value-added tax. customer charges to cover the new tax.

Taxes 131
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What Relationship Pricing Means for Bank Performance

South State Correspondent

Many banks pride themselves on superior customer service, and approximately 90% of all community banks believe that they provide an above-average level of customer service (the math cannot work that way). There are several ways for bank managers to address this issue and better align relationship pricing with bank profitability.

Resources 195
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The Risk of Interest Rate Movement in Relationship Banking

South State Correspondent

In recent articles ( here and here ), we discussed why banks that take the interest rate movement risk demonstrate lower performance as measured by return on assets (ROA). The second article compared and contrasted community banks’ pay-for-risk and relationship business models.

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The Recency Trap and Building Deposit Balances

South State Correspondent

One of the lessons that was driven home at the recent American Banker Small Business Banking Conference in Nashville was the difference in marketing between large national banks and community banks, particularly deposit marketing. ” This article explores the recency trap and discusses how to prevent it.

Marketing 195
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The Concentric Relationship Strategy in Banking

South State Correspondent

In recent articles ( here and here and here ), we discussed why banks that take risks to earn higher revenue demonstrate lower performance as measured by return on assets (ROA). Top-performing community banks deploy relationship banking. This article shares a simple strategy a successful lender (Linda N.) uses at our bank.

Strategy 195