Community Banks Often Take Risk Without Reward
South State Correspondent
JANUARY 26, 2025
Most bankers would refuse to accept risk without reward (or revenue). It would make no sense to risk the banks capital without adequate compensation. However, some banks are inadvertently taking risk without any additional revenue. The yield curve is currently flat, and the average community banks cost of funding is highly correlated to Fed Funds and SOFR (the industrys average is over 90% with a about a 6-month lag).
Let's personalize your content