When Ambitious Lending Meets Credit Stress
In this week’s article, Bauer examines banks that entered 2026 with both high loan-to-deposit ratios and loan quality that is less than stellar, a combination that can heighten credit and liquidity risk. Using nonperforming assets, the Texas Ratio, and Bauer’s…
Deregulation is Not a 4-Letter Word, Neither is Regulation
The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) of 2018 initially imposed broad regulatory burdens on all large and community banks, even though many community banks do not engage in the risky lending that caused the 2008 financial…
Rate Risk Worries Returning to the Picture
A timely confirmation is expected for Kevin Warsh to be the next Federal Reserve Chair, with Jay Powell remaining on the Fed’s board until his term ends in January 2028 (awkward). While we don’t know exactly what will happen with…