― L. M. Montgomery, Author, Anne of Green Gables
In This Issue...
- CSBS Publishes Community Bank Case Study Competition Journal
- Large Majority of Community Banks Have Positive Business Sentiment
- Federal and State Regulators Issue Guidance on Hurricane Michael
- In Case You Missed It... State Regulators Release First-Ever Data Report on Money Services Businesses
- In Case You Missed It... Coverage of the Community Bank Research Conference
CSBS Publishes Community Bank Case Study Competition Journal
CSBS published the third volume of the Journal of Community Bank Case Studies, a publication highlighting undergraduate student research on community banks across the nation.
The winning student team members from Eastern Kentucky University are Lorelei Nguyen, Aaron Schmidgall and Dalton Stanley. Maggie Abney served as faculty advisor and Central Bank & Trust Co. as the team’s community bank partner.
As first place winner, the Eastern Kentucky University team received a $1,000 scholarship per student, presented at the CSBS-Fed-FDIC research conference on community banking held in St. Louis, and was published in the Journal of Community Bank Case Studies.
The team advanced through three rounds of judging by banking professionals and overcame a pool of 51 competitors in the competition, which is open to undergraduate students in all fields of study as an opportunity to gain valuable first-hand knowledge of the banking industry. This year’s case studies looked at how community banks are using technology to streamline processes and better serve their customers.
For more information on the 2018 Community Bank Case Study Competition, visit www.csbs.org/bankcasestudy.
Large Majority of Community Banks Have Positive Business Sentiment
Eight-six percent of community bankers have a neutral or positive sentiment of economic and business conditions, with just 14 percent negative. That is one key finding from a research partnership between two Temple University economists and the CSBS, who are working together to develop a formal Indicator of Community Bank Sentiment.
To reach the conclusion of a net positive sentiment, Temple professors William Dunkelberg and Jonathan Scott analyzed the 2018 survey of community banks conducted by CSBS and the Federal Reserve. A white paper describing their findings was released at the sixth annual community bank research conference sponsored by CSBS, the Federal Reserve and FDIC.
Dunkelberg and Scott found the community bankers who have positive sentiment are:
- Looking to acquire than be acquired
- Not changing loan terms due to competitive pressures
- Prepared to be leaders in technology development
- Younger CEOs (under age 45)
- Operating in urban rather than rural markets
CSBS Senior Executive Vice President Michael Stevens summarized the importance of the collaboration between the Temple economists and CSBS: “If we get it right, the Indicator of Community Bank Sentiment will represent an important barometer of the economic health of local communities. To that end, the 2018 analysis is a great first step. Now, the work in front us of is to pursue further data, research and peer review, act on this feedback, and then present a formal indicator.”
Federal and State Regulators Issue Guidance on Hurricane Michael
In Case You Missed It... State Regulators Release First-Ever Data Report on Money Services Businesses
State financial regulators released the inaugural Money Services Businesses (MSB) Industry Report with transaction data covering 2017 from licensed money transmission, payments, virtual currency and other businesses. The report is based on data collected from NMLS, which is operated by CSBS.
- The money services businesses industry overall handled $1.24 trillion in 2017.
- The money transmission industry is highly concentrated with the 10 largest companies moving 74 percent of the almost $685 billion total.
- Foreign transfers, or international wires, comprised 22 percent of all money transmission in the United States. The average foreign transaction was $479.
- Virtual currency exchange ($110.8 billion) and virtual currency transmission ($6.2 billion) account for 9.4 percent of the industry.
John Ducrest, commissioner of the Louisiana Office of Financial Institutions and chair of the CSBS subsidiary that operates NMLS (State Regulatory Registry): “State regulators rely on company and industry data to regulate money services businesses for the benefit of local communities and the safety of customer funds. The MSB Call Report and new Industry Report are providing essential insight for state regulators.”
Rick St. Onge, Money Transmitter Regulators Association (MTRA) president and non-depository examinations chief for the Washington State Department of Financial Institutions, announced at the MTRA Annual Conference in Jackson Wyoming, “The MSB Industry Report leverages data collected from NMLS, including state licensing and supervisory data and the MSB Call Report. The MTRA supports Vision 2020 and states’ effort to reduce licensing burdens with increased efficiency.”
More information is available here.
In Case You Missed It... Coverage of the Community Bank Research Conference
Last week, CSBS, the FDIC, and the Federal Reserve held the sixth annual Community Bank Research Conference. In case you missed the festivities, we've got you covered:
- Federal Reserve, CSBS Release Findings from 2018 Survey of Community Banks
- CSBS to Create Index of Community Bank Sentiment
- CSBS's Corley: Compliance Costs are Coming Down
- FDIC Chairman McWilliams Announces First Public Policy Initiative
- Cleveland Fed President Mester Addresses CRA Effectiveness and Reform
- Fed Vice Chairman for Supervision Addresses Urban and Rural Community Bank Trends