The Headache: Community bank efficiency ratios are deteriorating, FDIC reports.
Our Question: Why? And what can be done to reverse the trend?
Come see what other bankers think, and add your own views
Deep in FDIC's latest figures was a chart demonstrating a serious degradation in community bank efficiency ratios.
The deterioration began in 2006 and has steadily grown worse.
At yearend, the average ratio for banks under $1 billion stood at 74%, versus 64% at the end of 2004. Through most of the same period, banks over $1 billion in assets have improved, with an average ratio of 53% at yearend, versus 57% at the end of 2005.
We have our own guesses on the causes. But tell us why you think this has happened; whether it matches your own bank's experience; and what your bank is trying to improve things.
Let's hear your views and ideas below!
(Editorial Note: Contributions to Pass the Aspirin may also appear in our print edition. While we will ask for your e-mail address, this is only as an aid to verifying identity and will not be used for any marketing or promotional purpose. The e-mail address will not be published.)
To suggest new topics for Pass the Aspirin both in print and in this blog, please e-mail firstname.lastname@example.org
For vintage Aspirin columns, go to www.passtheaspirinplus.com