idob update
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IDOB Update. Vaughn Noring Bank Bureau Chief. April 8, 2011. Topics. Background Iowa Banking Environment Areas to Monitor Outlook for 2011 Questions. Iowa Bank Demographics. 360 banks and thrifts headquartered in Iowa. 311 state banks 34 national banks 15 thrifts - PowerPoint PPT PresentationTRANSCRIPT
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IDOB Update Vaughn Noring
Bank Bureau ChiefApril 8, 2011
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Topics
• Background• Iowa Banking Environment• Areas to Monitor• Outlook for 2011• Questions
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Iowa Bank Demographics• 360 banks and thrifts headquartered in Iowa.
– 311 state banks– 34 national banks– 15 thrifts– 13 out-of-state banks with 318 offices.
• Total assets of the state banks is $51.7B– $ 166,000,000 avg. size IA state-chartered bank– 2,000,000,000,000 BofA, Citibank, Chase
• Declining number of banks, but more locations• Economic engine for Iowa’s main streets &
communities
As of 12/31/10
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42 Iowa Bank Failures• 1982 2 banks • 1983 1 bank• 1984 3 banks • 1985 11 banks• 1986 10 banks • 1987 6 banks• 1988 6 banks• 1993 1 bank• 2000 1 bank• 2001 0 banks• 2002 0 banks• 2003 0 banks• 2004 0 banks• 2005 0 banks• 2006 0 banks• 2007 0 banks• 2008 0 banks• 2009 1 bank (Vantus—OTS
Charter)• 2010 0 banks
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Areas to Monitor
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Farmland Prices
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BUBBLE
Obtained from Mike Duffy at ISU
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Interest Rate Risk
• Businesses and banks will need to do good job of risk management– Impact of rising interest rates – Don’t be over-reliant upon short-term funding
if rates increase– Maintain adequate capital and liquidity
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Other Areas Worth Monitoring• Unemployment• Housing• Inflation• Legislation & Policies
– OD policy– Dodd-Frank implementation
• GSEs• Credit risk retention• Stress testing• CFPB• Durbin Amendment• $250,000 deposit insurance permanent• De Novo Interstate Branching
• Changes in regulatory personnel
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Properly Evaluating Risks Remains Important
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What’s the Outlook for 2011?
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Predictions• The outlook is for the U.S. economy to expand at a solid
pace this year and next year• Employment is expected to rise moderately over the next
two years with the unemployment rate edging lower• Slackness in the economy will lead to a relatively
contained inflation rate• Low loan demand by consumers and businesses • Interest rates expected to stay low• Opportunities for businesses and individuals willing to
take calculated risks
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Questions?