Tax reform. Simple phrase which stirs up many partisan feelings depending on your world view. With this stated though, the tax code has been changed and now it is law, so the question should be asked; what does this all mean for our country and what does it mean beyond the once a year process of filing our taxes? In one industry, banking, the tax changes could serve to level the competitive playing field between credit unions, community banks, and larger commercial banking giants.
Right now, small- and mid-sized institutions are facing more favorable conditions for growth than have been seen in the past decade. Thanks to the 2017 tax reform, banks of all sizes now have more cash on hand than they would have a year ago. Additionally, looser regulations are providing financial institutions with more latitude when it comes to the amount of assets that must be held in reserve. In short, smaller players have more cash to compete with larger financial institutions and the winner is the banking customer – but the key will be investment.
Over the past few years, we have seen large banks invest in infrastructure and technology to attract and keep customers. Read More
