Latest comments for http://www.ababj.com , comment 0 to 2 out of 2 comments http://www.ababj.com Sat, 25 May 2013 17:19:15 +0100 FeedCreator 1.7.2 http://www.ababj.com/myblog/where-will-your-bank-fit-in-the-upcoming-consolidation-trend.html#pc_786 Jeff - you also forgot to include external effects that effect bank viability. These include competion and regulatory challenges. Competition is getting more intense and this trend is likely to accelarate in the coming months & years. Competition is coming from the traditional Banks and Credit Unions, from a new breed of online-only and direct to consumer ventures, as well as non-traditional competitors such as AmexBank, DiscoverBank and others. Further, emerging competitors are beginning to emerge including PayPal, rumors of GoogleBank and AppleBank. The reality, is that Retail Banking is highly commoditized makeing it exceedingly difficult to differentiate. Consumers have greater insights to offers and capabilities of various banks, and new technologies have broken the old rule that your bank must within driving distance of your residence/work place. With online banking, mobile banking, RDC and other tools, virtual banks are a reality. The challenges of regulatory pressures is summarized very well by John P. Kameen (comment above). Suffice it to say, that cost, effort, and personnel will need to increase substantially to manage new and emerging regulatory requirements. Can small banks survive? Yes. Will there be many fewer smaller banks in 2 years. Yes - there will be a substantial reduciton in the - Serge Milman Thu, 27 Jan 2011 11:18:37 +0100 http://www.ababj.com/myblog/where-will-your-bank-fit-in-the-upcoming-consolidation-trend.html#pc_700 We are one of the $600 million bank's which opted for merger. We were driven to the wall by the regulators. They came into our bank 18 months ago and, before they even looked at us, demanded that we up our capital to 13%. No amount of facts, including a personal appeal to the higher-ups, could dissuade them. When your management has to spend all of its time answering them, and fighting to present the facts, they can't run a profitable institution. We raised $8 million in new capital and could have gotten double that. We protested we did not need new capital but they persisted. They literally wore us out. We got a good deal for our shareholders. After the dust settled we will have made $5 million this year as we turn over the reins to our acquiring bank. We also have several million in over-accrual. Another community bank gone but not soon forgotten. - John P. Kameen Thu, 16 Dec 2010 12:41:20 +0100