Published in: WIB Magazine

At midyear, the community banking industry is stronger and showing signs of improvement. Industry-wide, strong capital positions continue to be built, liquidity remains widely available, and profit margins are decompressing following historic lows during and after the mortgage crisis. While profitability has been propped up by favorable economic conditions, banks must remain cognizant of their risk position and monitor and manage that position accordingly. Figure 1 displays the CBOE Volatility Index’s spike in late January, indicating an increasingly nervous market. With this quarter characterized by spikes in rate and equity volatility, we’ll dive into today’s economic climate.

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