So about the name of my new, banking-focused blog: it flies in the face of the so-called “Texas ratio” that originally inspired it. If you’re not familiar with this ratio, it measures a bank’s credit troubles. Simply put, the higher one’s Texas ratio, the more severe the bank’s credit troubles. According to the Dallas Fed:
Bankers, particularly those in Texas, cringe at any reference to the Texas ratio. Of all the metrics used in finance, the Texas ratio is among the most feared because it can be used as an early warning signal to identify financial institutions at greatest risk of failure…
By design, this site will explore issues and opportunities relevant to key leadership throughout our financial community. So, I felt the title fits with a wink and a nod to my focus and interests.
You see, I’m bullish on the future of banking. While some want to criticize and harp on things like a Texas ratio (which, truth be told, should be renamed to reflect recent challenges in Georgia or Florida), I’m keen to explore the many ways banks continue to support our neighborhoods and communities as they grow through acquisition or innovative new strategies and/or tactics.
Make no mistake: the risk & compliance sides of banking will take a secondary position to how banks deliver value to their customers, communities and shareholders. As I spend a lot of time talking with bank executives and board members + leaders at those companies providing services and support to FIs, I intend to pass along some of what I’m seeing, learning and thinking on a weekly basis. But for now, “ciao, ciao,” and thanks for checking out my latest writing venture!