A variety of factors—rising interest rates, persistent inflation, concerns about a potential recession and pandemic-related changes in where people work—have prompted concerns about the health of commercial real estate (CRE) properties and the bank loans that support them. Supervisors and economists at the Federal Reserve actively monitor CRE market conditions and the CRE loan portfolios of the banks it supervises.
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Bank Term Funding Program Provides Liquidity to Depository Institutions
On March 12, the Federal Reserve launched the Bank Term Funding Program (BTFP), a lending program for eligible depository institutions—banks, savings banks and credit unions—experiencing liquidity issues. The goals of the BTFP are to bolster institutions’ capacity to safeguard deposits and ensure the ongoing provision of credit to communities and the broader economy.
Read More about Bank Term Funding Program Provides Liquidity to Depository InstitutionsRising Interest Rates Complicate Banks’ Investment Portfolios
Rising interest rates have prompted both challenges and opportunities for banks over the past year. Bank supervisors are, understandably, urging bankers to pay close attention to a myriad of ways changing interest rates can affect earnings and capital, or what’s termed interest rate risk.
Read More about Rising Interest Rates Complicate Banks’ Investment PortfoliosCommunity Banking Conference Spotlights Research on Lending
After a two-year COVID-19 pandemic pause on in-person participation, this year’s Community Banking Research Conference returned to the St. Louis Fed in September. The annual conference—sponsored by the Federal Reserve, the Conference of State Bank Supervisors (CSBS) and the Federal Deposit Insurance Corp. (FDIC), and hosted by the St. Louis Fed—spotlights emerging research on issues important to the community banking industry and features keynotes by leading community bankers and regulators.
Read More about Community Banking Conference Spotlights Research on LendingBankers Cite Economy, Cybersecurity as Top Risks
After several years of pandemic-related internal and external challenges, the nation’s community bankers have largely turned their focus to traditional concerns related to the economy, technology and competition from nonbank providers.
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