Survey Details Banking Challenges in Tenth Federal Reserve District

The Federal Reserve Bank of Kansas City’s latest edition of Financial Industry Perspectives features the results of a survey of commercial banks within the Tenth Federal Reserve District, which encompasses Nebraska, Kansas, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.

Survey results are detailed in a series of essays focusing on topics including management and staffing challenges, Internet banking, the decline in core deposits and financial modernization after the 1999 repeal of certain banking restrictions under the Gramm-Leach-Bliley Act.

Among survey findings:

• Top concerns through 2005 include maintaining and attracting retail deposits, developing new sources of noninterest income and competing with nonbank financial firms.
• Areas of lesser concern through 2005 include meeting community credit needs and maintaining or increasing capital.
• More than 90% of respondents do not expect an ownership change in the near future.
• The District’s typical bank is still a community bank that is family owned.

Financial Industry Perspectives is a publication of the Bank’s Division of Supervision and Risk Management.

In addition to the essays in Financial Industry Perspectives, a copy of the complete survey, along with summary statistics of responses is available upon request and online at www.kansascityfed.org/publicat/fip/fipmain.htm

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CONTACT: Tim Todd
816/881-2308
e-mail: timothy.todd@kc.frb.org