Reward employees for watching out and speaking up when a bank is taking on too much risk.
Following the collapse of Silicon Valley Bank last March, the stability of U.S. regional banks has been a top concern for investors, regulators and depositors alike. This sector is vital to the U.S. economy as small businesses overwhelmingly choose these small- and mid-sized institutions for their specialized services and relationship-driven advice.
What does this entail? First, employees must be incentivized to be watchful and proactive. Growth opportunities for regional banks can be limited, and when demand grows in a certain sector– such as geographic-specific real estate — the bank’s client mix will consolidate. While such economic booms can generate significant cash flow, they also create concentration risk, making the bank vulnerable to broad macroeconomic headwinds.
PacWest Bancorp PACW , for example, was able to reinvigorate the market’s confidence in the bank after announcing a plan to sell off $2.6 billion in loans, providing the stability investors sought. The bank was able to assess risk, weigh options, come to a decision and communicate it. This quick pivot and the actions of the bank’s leadership following a steep decline in its stock price has kept PacWest from suffering Silicon Valley Bank’s and First Republic’s fate.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
UBS downgrades Apple, says it sees weaker demand ahead for iPhonesWith Apple shares trading at premium to the market, UBS says the risk/reward is unfavorable.
続きを読む »
TCU sweeps Indiana State in Super Regional, advances to College World Series for 6th timeFORT WORTH, Texas — Cole Fontenelle went 3 for 4 with a double, a solo homer and two runs to help TCU beat Indiana State 6-4 Saturday to sweep the best-of-3...
続きを読む »
Prom 2023: Mainland Regional High School (92 photos)Subscribers get free photo downloads. Find all our prom coverage at nj.com/prom.
続きを読む »