Bank News and Bankruptcies Surge

Posted under Uncategorized by Ron Harris

Factory Orders (1.0% est.; 1.7% prior): Orders are expected

to have increased in July, as export strength continued to

support production.

FIXED INCOME & RATES:

Yesterday: Yields slipped 6bp, as lower oil prices could not

offset stronger than expected weakness reported in construction

and manufacturing. For the most part, banks were content to

watch and wait for higher yields. Today: Yields are down 1bp, as

investors worry economic softness in Europe is likely to last

longer and be deeper than previously expected.

BANK NEWS:

• Construction Lending: The national delinquency rate

(calculated as loans 30 days or more past due) for construction

loans climbed to 8.1% in the 2Q, up from 7.2% in the 1Q and

2.4% in the 2Q of 2007.

• Text Banking: USAA Federal Savings Bank rolled out their

Text Banking which allows customers to check balances, pay

bills and initiate transfers all with a text message.

• Rising Bankruptcies: The latest data shows bankruptcy filings

jumped 29% in the 12 months ended June 30, as business

filings soared 41% and personal filings climbed 28%.

• New Bank Deposits: The average de novo branch opened in

the past 5Ys carries $19mm in deposits.

• Branch Location: A recent study of 5k bank branches finds

location drives about 70% of branch success.

• Remote Capture: A new survey finds 25% of small businesses

plan to use remote capture by the end of next year, as they

seek lower costs, later deadlines, faster availability and

increased time savings.

 

Source; Bank News Dailiy