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Bank ROE – What Should Be Your Bank’s Target?

South State Correspondent

There are various models investors may use to assess return and risk, but the most widely used is a risk premium model called CAPM (capital asset pricing model). The market return minus the risk-free rate is also called the market risk premium and can be approximated by the S&P 500 long-term return (10.2%) minus the 4.00% risk-free rate.

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10 Big Bank Marketing Lessons from the ABA Bank Marketing Conference

South State Correspondent

Last week, the American Banking Association (ABA) held its annual Bank Marketing Conference in Denver, receiving rave reviews. The theme was – developing your marketing superpowers. Amid the brewery networking, superhero costumes, and fun, some fantastic bank marketing lessons were had, and not just for bank marketers.

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The Innovative ‘Green Shoots’ Growing Out Of COVID-19’s Scorched Earth

PYMNTS

The uncertainty injected into the market, as Ning Wang, co-founder and chief business officer at PingPong , told Karen Webster in a recent conversation, is having undeniable effects worldwide – which are not likely to wear off anytime soon. “I I do believe the situation in Europe, and especially in the U.S.,

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COVID-19 Has Devastated SMBs, But It Might Make Their Insurance Policies Better

PYMNTS

According to Pogreb, the industry now has an opportunity to embrace market disruption in ways that can strengthen customer ties and get capital into the hands of business owners who desperately need it as quickly and painlessly as possible. What has changed, however, is how they want to buy products and receive claims payouts.

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Back to the Future IV: challenges for financial stability policy in the next decade

BankUnderground

But while some of this development can build on well-grounded principles for financial stability policy, other aspects are likely to come up against three timeless challenges, requiring novel and innovative thinking to overcome. Figure 1 summarises the most common issues considered by the Financial Policy Committee in the last decade.

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How Federal Debt May Impact Banking

South State Correspondent

However, because bank capital has an average expected life of 15 to 20 years, bank managers must gauge and react to secular changes that will impact their business model. While the US is, and will remain, the center of innovation and risk-taking, the economy will transition to fewer small businesses and more larger enterprises.

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Spend Controls Fuel Commercial Card Innovation

PYMNTS

Spend controls were the focus of innovation in the commercial card space this week thanks to feature and program launches. This week’s commercial card innovation tracker includes a rollout of the next generation of authorization controls from Comdata Inc., as well as the launch of the Flex by Finaxar initiative from Finaxar.

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