Category Archives: Commercial Banking

Regulatory Relief on the Horizon for Community Banks?

A group of Wisconsin bankers on a recent lobbying trip to Washington, D.C., returned with heightened optimism that some of the rules now governing community banks — regulations they contend are too costly — will be eased.

Community banks in Wisconsin and the U.S., defined generally as banks with assets of less than $10 billion, have complained since 2010 that reforms passed by a then-Democrat controlled Congress and aimed at preventing another financial crisis unfairly imposed an expensive compliance burden on them.

Continue reading Regulatory Relief on the Horizon for Community Banks?

Proposed Accounting Changes Should Make Hedging More Attractive to Community Banks

In the regular course of business, banks are exposed to market risks from movements in interest rates, foreign currencies and commodities. Many banks respond by utilizing over the counter derivative instruments to hedge against volatility. Under current accounting standards, banks must account for derivatives under the ASC 815 (formerly FAS 133) models. Continue reading Proposed Accounting Changes Should Make Hedging More Attractive to Community Banks

CRE Lending Changes Are Coming

Regulatory relief for community banks appears to be on the way, and the changes will likely make commercial real estate lending easier.

Banking regulators on March 21 issued a joint report to Congress on their efforts to reduce regulatory burden. Most notably, the report stated that regulators were considering changes to the capital treatment of risky commercial real estate, mortgage servicing assets and certain deferred tax assets. Continue reading CRE Lending Changes Are Coming

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