By Ray Birch LAKE FOREST, Ill.—A “new era” in checking—and overdrafts—is upon financial institutions, and those that adopt the new ways of the market will prosper, while those that don’t will lose money and will likely become a target of regulators, one economist is stating. “What is the new era of checking? Checking has always been unprofitable,” said Michael Moebs, economist and chair of Moebs $ervices. “The Great Recession era from 2008 to 2014 finally made this obvious to users, regulators, and Congress. COVID, from 2019 to 2022, made it a an even clearer issue today.” Profitable checking is the key to driving deposit funding for loans and investments, reminded Moebs. “There are about 9,000 financial institutions that offer checking,” state...
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