Among this week's editors' picks: Bank M&A is expected to remain high in 2018, two banks eye additional mortgage securitizations after success in 2017, and bond yields rise in the U.S.
Outlook bright for small banks in 2018, but tech and competition loom large
Tax cuts and other tailwinds should bolster many community banks' fortunes in 2018. But these lenders also face intensifying competition from megabanks.
Bank M&A volume expected to remain elevated in 2018
A pursuit of scale and core deposits continues to bring bank buyers to deal tables, while sellers abound as community banks grapple with intense competition, high technology costs and aging management teams.
CECL could create large capital shortfall for community banks
The implementation of a new accounting standard, known as the current expected credit losses model, will change the way banks reserve for loan losses and could have a far more punitive impact on community banks than their larger counterparts.
Banks eye additional mortgage securitizations after 2017 success
Two banks that had mortgage-related securitizations during 2017 expressed interest in additional similar transactions in 2018, and one of them has already started with the process.
Bond yields rise in US, other large economies as central banks tighten policy
Yields for 10-year sovereign debt have risen in several of the world's largest economies so far this year as major central banks continue their efforts to tighten monetary policy in 2018.
