Regions Bank as Well as Research Paper

Download this Research Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Research Paper:

Making loans to high-risk borrowers, engaging in risk or faulty investments, and otherwise managing money in a sloppy way is a surefire way to get derision from regulatory bodies and/or the public. The figures for the competition bear out that remaining in proper fiscal shape in banking operations is possible even during these uncertain times and there is no reason why Regions Bank cannot do the same.

Over the next twelve quarters, customer service initiatives to drive and retain recurring business are important as this is the best thing Regions Bank can do to get some breathing room. Attracting high-quality borrowers that are willing to borrow money during uncertain times is also important and at a premium nowadays. A barrier to both of these ideas is that people often become paralyzed and are hesitant to make major fiscal decisions in the midst of economic uncertainty. The potential loss of a job and/or concerns about the fiscal safety of one's money is an omnipresent matter to many people. Banking customers of Regions Bank should be reminded that Regions Bank is in sound fiscal shape and even if the worst happens with Regions Bank, the FDIC will insure any deposits made.

An overall increase in business, despite how it is garnered, will boost income (interest income in particular as well as the fees that Regions Bank's customers incur) and these extra funds can be used to start to loosen up credit standards to people excluded prior but that are still rather low risk based on their career and borrowing histories. As long as the right being are being lent to, Region Banks' overall risk profile should remain positive.

Projections bear out that non-performing loans were at an apex from 2009 to the beginning of 2011 but the possibility of significant growth in those bad loans is below 3.6% after being in excess of four percent. A fall of nearly one percent over the last 2-3 years is no small thing and should be taken advantage of. Despite the current economic challenges, much of the economic fallout to bear has already revealed itself and things are starting to settle down, even if economic growth patterns are uneven. The current state of affairs seems to be based more on people being hesitant and tepid rather than a clear and present danger being in play. The failure rate of banks has dropped significantly. All of these factors should be gently pressed upon potential quality loan customers as this would be the main roadblock to procuring their business at this current time.

One market condition that Regions Bank should take full advantage of is the newer propensity of banking customers to start saving money. Whether it be for a purchase of a house or a "rainy day fund," customers of Regions Bank should be encouraged to keep their money with it since it boosts the deposit figures at the bank, the customer still has easy access to the funds should they be needed, and they can even earn interest on the income while Regions Bank has use of it. This money, if harnessed, should not be used carelessly or foolishly, but a sharp increase in deposits would greatly increase the liquidity of Regions Bank and put it in a much more solvent position. This would allow Regions Bank to invest more while not over-leveraging its assets at the same time. Deposit growth is projected to level off for both the competition and Regions Bank in 2012 and this needs to be undone, at least with Regions Bank, if at all possible. The projection that Regions Bank's competition will surpass loans and deposits per employee figure cannot be allowed to happen. The projection of income growth falling could be disproven if that can be pulled off. Regions Bank trails the entire pack in interest income and this needs to change immediately. The Frost National Bank is just barely ahead so getting out of the cellar would not take a lot of movement.

Conclusion

All in all, Regions Bank has weathered the storm and it has an opportunity to buck the projections of flat growth and paltry asset performance. Complacency and just staying above water is not a sound strategy and should be the antithesis of how Regions Bank proceeds over the next three years. While things are not projected to get much worse than they recently have been, Regions Bank needs to constantly press the idea of doing better in any way that it can.

Relevant tables and reports relative to the above analysis is enclosed with this report as appendices and a reference list of the same is also provided. There is a plethora of data that was not explicitly mentioned in this report but the most important points were covered throughout.

References

Annual 10(k). (2011). Birmingham, AL: Regions Bank.

Competition. (2012). Online: Bankers GPS.

Forecast With Drift. (2012). Online: Bankers GPS.

Forecast With No Drift. (2012). Online: Bankers GPS.

Peer Review.…[continue]

Cite This Research Paper:

"Regions Bank As Well As" (2012, September 07) Retrieved December 10, 2016, from http://www.paperdue.com/essay/regions-bank-as-well-75411

"Regions Bank As Well As" 07 September 2012. Web.10 December. 2016. <http://www.paperdue.com/essay/regions-bank-as-well-75411>

"Regions Bank As Well As", 07 September 2012, Accessed.10 December. 2016, http://www.paperdue.com/essay/regions-bank-as-well-75411

Other Documents Pertaining To This Topic

  • Bank of America Is a

    S. The bank expanded into the Chicago market. Bank of America, with a strong California base, was already the largest bank in the U.S. By deposits at that time. The company completed the largest bank merger in U.S. history with the acquisition of NationsBank. The next major step was the 2004 acquisition of FleetBoston, followed by MBNA, a major credit card company. The bank began to expand outside of the U.S.

  • Bank of America Is One

    The Bank of America is not leveraging its assets effectively at present, and this is something that makes it a relatively unattractive investment. In addition, the Bank of America may not be in a position to take advantage of an upswing in the U.S. economy, because the retail housing market is still depressed and the Bank is likely gun-shy about building back its mortgage business. The bank has probably

  • Bank Profitability in the Previous

    (Warnings to be ignored) The market for interest-rate change is another privileged playground. Banks just pay a low, short-term floating rate and get a high, fixed one. Most of the top 20 American banks receive at least 10% of their profits from this increase, and for J.P. Morgan Chase, it was an astounding 33% last year. (Warnings to be ignored) as well as civilizing their interpretation of the economic tealeaves,

  • Bank of America Company Background

    S. banking industry." By 1974, the card has virtually assumed its contemporary form: "What an amazing transformation has taken place since Bank of America began marketing the precursor to Visa with its 1974 ad campaign 'BankAmericard. Think of it as money.'" 3. GOALS-OBJECTIVES-STRATEGIES. The companies overall strategy can be summed up in terms of its commitment to identifying what its customers want and being there on a "firstest-with-the-mostest" basis. Taken together,

  • Bank for International Settlements Bis

    From its creation to 1988 it undertook banking functions and opined generally on the international banking system. 2. Starting in 1988 it began to assume the role of an unofficial international bank regulator. Although it had no official international status, its members -- central banks of the major banking countries -- were obligated by the nature of their membership to abide by its edicts and the rest of the world

  • Second Harvest Food Bank What Does Hunger

    Second Harvest Food Bank What does hunger look like? The image many people hold of what hunger is and who it afflicts does not reflect reality. With changing economic conditions in Florida, as well as the entire country, the face of hunger now reflects the images of our friends and neighbors. It is the mission of Second Harvest Food Bank of Central Florida to battle hunger in Central Florida in order

  • World Bank Role in Avoiding Economic Crisis World

    World Bank-Role in Avoiding Economic Crisis World Bank and Economic Crisis World Bank: How necessary is World Bank in avoiding an economic crisis? Increased capital flows and economic crisis Leveraging the liquidity of developed countries Global Financial Development Report 2013 (GFDR) World Bank: How necessary is World Bank in avoiding an economic crisis? As a result of Bretton Woods's conference, the World Bank (WB) was created in 1944. The most influential role in the establishment of WB


Read Full Research Paper
Copyright 2016 . All Rights Reserved