The government response to the global financial crisis combined with consumer protection trends, the ongoing development of financial technology, and a protracted low interest rate environment have created dramatic changes in the risk/reward profile of a typical community bank balance sheet. Bond market liquidity, mortgage lending regulation and securitization, peer-to-peer lending platforms, payment innovation, and the “normal” level and slope of the yield curve are all very different from anything we have experienced previously. Many of these changes can create adverse outcomes for community banks. Their collective impact demands serious consideration as we contemplate the “right” balance sheet for 2016 and beyond.
Session objectives include:
There is a Gordian Knot in the banking industry due to challenges posed by liquidity, the regulatory environment, low interest rates, and fintech.
How to manage the cost of regulation and understand the benefit.
How fintech can enhance rather than post a threat to the institution.