CFO Focus: Financial results up, confidence in managing change down

first_img continue reading » Even as institutions reported improved financial results last year, CFOs’ confidence in their institutions’ ability to manage the financial impacts of an evolving business environment decreased in 2018, according to a recent Kaufman Hall report.The report, 2019 CFO Outlook: Performance Management Trends and Priorities for Financial Institutions, is based on a nationwide survey in late 2018 of executives from credit unions, banks, and other financial services institutions.The report notes that although the Federal Deposit Insurance Corp. reported a 30 percent increase in net income year over year for the financial services institutions insured by the agency, those banks and savings institutions also face increased exposure to interest-rate and credit risk, as well as emerging competition from “neobanks” and other nontraditional competitors.The combination of disruptive economic forces and increased competition has had a significant impact on senior executives’ confidence in their institutions’ ability to make course corrections in response to changing market conditions: ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

FSOC: GSEs’ activities pose potential risk to financial system

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The Financial Stability Oversight Council (FSOC) Friday met to discuss its activity-based review of the secondary mortgage market and acknowledged that the government-sponsored enterprises’ (GSEs) activities, if not mitigated, pose a risk to the financial system. The Council warned that should the GSEs fail, access to capital for first-time homebuyers could be significantly reduced.Federal Housing Finance Agency (FHFA) Director Dr. Mark Calabria serves on FSOC alongside NCUA Chairman Rodney Hood and leaders of other federal and state regulatory bodies. View Calabria’s remarks on the Council’s findings. Calabria previously offered his support for FSOC’s review stating that, “As demonstrated by the 2008 financial crisis and again by COVID-19, Fannie Mae and Freddie Mac must be well capitalized in order to support the mortgage market during a stressed environment.”The Council recommended the GSEs adopt capital requirements within the minimum capital levels outlined in the FHFA’s proposed rule, which would require the GSEs to maintain the following risk-based capital levels: continue reading »last_img read more