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OTC Markets Blog

Latest commentary on Market Structure, Compliance, Small Cap and Reg A+ issues, including insights on the news and trends that affect the public markets.

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Tony Hodson

Senior Vice President Market Data OTC Markets Group

Are CRE Concentrations Still a Financial Crisis Prognosticator?

During the Great Recession, commercial real estate (CRE) lending practices were heavily scrutinized and considered to be a leading factor of economic downturn. As a result, bank concentrations in CRE are assumed to be a strong predictor of bank failures.

Over a decade later, rising bank CRE lending concentration levels accompanied by historically high CRE prices have many economists convinced that regulations need to be revisited so history doesn’t repeat itself. As they debate whether or not current CRE lending practices are an accurate prognosticator, recent Qaravan data tells a far more nuanced story. Continue reading “Are CRE Concentrations Still a Financial Crisis Prognosticator?” →

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Key Takeaways From Regulators’ Recent CECL Final Policy Statement

In late December, an interagency body of regulators closed the comment period for a set of proposed changes to the ever-evolving CECL standard.  Regulators have recently come back with their responses to industry comments in the form of the “Final Policy Statement for FASB ASC Topic 326” found here:  https://www.fdic.gov/news/board/2020/2020-02-20-notational-fr.pdf Continue reading “Key Takeaways From Regulators’ Recent CECL Final Policy Statement” →

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CBLR: A win for most, but time for the rest to move on

In November, the federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, known as the community bank leverage ratio framework (CBLR), for qualifying community banking organizations. The final became effective on January 1, 2020.

Continue reading “CBLR: A win for most, but time for the rest to move on” →

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CECL is Coming: Here’s How Bank Stakeholders Can Anticipate Its Impact While Making Their Voices Heard

With the most sweeping re-casting of credit risk management in decades looming on the horizon, regulators, bank executives and the markets are bracing for the potential disruptive ramifications of this new set of credit loss accounting standards. In response to calls for a more cautious rollout, regulators have agreed to an implementation extension for most community banks. Continue reading “CECL is Coming: Here’s How Bank Stakeholders Can Anticipate Its Impact While Making Their Voices Heard” →

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By Putting UBPR and Call Reports Under the Microscope with Qaravan, Investors and Bank Stakeholders Can Gain Meaningful Insight Far Beyond Raw Data

The banking industry is unique in the amount of regulatory scrutiny it is subject to, much of which is in the form of self-reporting. Since legislation was passed in 1975 in response to the failure of two federally chartered institutions (United States National Bank and Franklin National Bank), every national bank, state bank, federal savings bank, federal savings association, and credit union is mandated by law to report highly standardized and detailed information about its operations to a central authority, the Federal Financial Institutions Examination Council (FFIEC).

Continue reading “By Putting UBPR and Call Reports Under the Microscope with Qaravan, Investors and Bank Stakeholders Can Gain Meaningful Insight Far Beyond Raw Data” →

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OTC Markets Group Top Performing Banks Report by Qaravan: 2Q 2019

Advanced Data Analysis Helps Connect the Dots to Highlight the Nation’s Top Performing Community Banks

Continue reading “OTC Markets Group Top Performing Banks Report by Qaravan: 2Q 2019” →

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CECL: Unpaved Road Ahead

The Genesis/Birth of CECL

After the 2008 financial crisis, much of the focus on the regulation of financial institutions shifted to mitigating systemic risk. This included an increased focus on stress testing and the recapitalization of institutions—both intended to help ensure solvency and insulate the global economy from further erosion. Continue reading “CECL: Unpaved Road Ahead” →

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