Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news.
FED CHAIRWOMAN GOES TO WASHINGTON, D.C.: Federal Reserve Chair Janet Yellen will make two highly-anticipated appearances this week at the nation’s capital that will likely have a huge effect on both U.S. and international markets ahead of the next Federal Open Market Committee (FOMC) meeting on Dec. 15 and 16. On Wednesday (Dec. 2), Yellen will speak to the Economics Club of Washington, D.C., where she is expected to comment on the U.S. economic outlook for the upcoming year. The next day, Yellen will speak to the Joint Economic Committee and answer questions from congressional officials for the first time in nearly six months.
FDIC-INSURED INSTITUTIONS EARN $40.4 BILLION IN THIRD QUARTER 2015: Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $40.4 billion in the third quarter of 2015, up $1.9 billion (5.1%) from a year earlier. The increase in earnings was mainly attributable to a $3.2 billion decline in non-interest expenses, as itemized litigation expenses at large banks were $2.7 billion lower than a year ago. Financial results for the third quarter of 2015 are included in the FDIC’s latest Quarterly Banking Profile.
The 5,812 insured institutions identified as community banks reported $5.2 billion in net income in the third quarter, an increase of 7.5% from the third quarter of 2014. Net operating revenue of $22.4 billion at community banks was $1.6 billion (7.5%) higher than a year earlier.
Of the 6,270 insured institutions reporting third quarter financial results, more than half (58.9%) reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the third quarter fell to 5%, down from 6.6% a year earlier and the lowest since the first quarter of 2005.
NEW POLL REVEALS CONSUMERS LACK EDUCATION, KNOWLEDGE ABOUT NEW CHIP CREDIT/DEBIT CARDS: A new survey from CA Technologies shows consumers lack knowledge and education about the new microprocessor chip credit and debit cards most have been receiving from card issuers to replace their standard magnetic stripe cards. The survey was conducted online by Harris Poll on behalf of CA Technologies earlier this month.
Although more than half of U.S. adults who have a credit/debit card have been issued a new chip card (59%), only two in five (41%) know what the benefits of the chip card are, and even fewer (37%) say their card issuer provided information or education on how to use it. Further demonstrating the lack of knowledge and education, more than three quarters of the credit/debit card owners who have received a chip card said they believe their new chip card will better protect them from fraud during an online purchase.
FINANCIAL WORRIES RANK AS TOP CAUSES OF STRESS IN THE U.S., GLOBALLY: In the US and around the world, financial problems easily claimed the top spot among the causes of stress for people; with self-pressure closely trailing in second place. The results are part of a new global GfK survey investigating major causes of stress, using responses from over 27,000 consumers in 22 countries. Globally, the causes of stress nearly mirror those in the U.S. Money (29%), self-pressure (27%) and the lack of sleep (23%) make up the U.S. top three. Lack of free time (22%) and work stress (19%) came in fourth and fifth places, respectively.