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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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