As dif assessments evolve banks 2012 colorado

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Unformatted text preview: olorado Business Economic Outlook should benefit from a more transparent framework for risk taking and related costs. The FDIC and the Federal Reserve expect larger institutions that pose a higher risk to the financial system will end up paying more, while it is anticipated that smaller community banks (like ones in Colorado) will pay significantly less. • The Durbin Amendment: Effective October 1, 2011, interchange fees received by banks will be reduced to what the Fed deems reasonable for their underlying costs. This large wealth transfer from debit card issuers to merchants will likely end many free premium bank services, while it is less clear if retailers will pass on those savings to consumers. While this change reduces yet another bank profit center, it should not have any impact on Colorado banks as their assets are below the $10 billion exemption. Credit Unions The Colorado credit unions have emerged from the Great Recession quite strong as their assets and earnings grew, principally from improved performance in their loan portfolios. Total assets rose to $15.1 billion, or...
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