Capital One Financial Corp. (COF) Chief Financial Officer Stephen Crawford is looking forward to a return to free markets after quantitative easing, as spoken at the 33rd annual BancAnalysts Association of Boston Conference held at the Langham Hotel.
Crawford expanded on the theme of the conference, centered around interest rates, and gave the macro view of the McLean, Virginia-headquartered Capital One in his presentation. Capital One is a diversified financial services holding company with banking and nonbanking subsidiaries.
FOR THE LATEST TWST BANKING REPORT CLICK HERE.
Noting that the company gets few questions on the effects of QE relative to its peers, Crawford said, “I find that the QE conversation is one-sided and focuses only on the liability on the balance sheet.”
“Count me as one who welcomes a return to free markets in terms of what that will do to financial markets,” he added.
The industry has moved decidedly toward being more asset-sensitive, Crawford said, claiming new regulations are among the factors that have “pushed” the industry into an asset-sensitive position.
However, he noted, “The far bigger risk is that the long-anticipated raising of rates is deferred,” noting the uncertainty surrounding the impact of the end of QE and rising rates. He noted that the end of QE would likely create “deposit outflows,” which could be offset by economic growth, and said the changes in the finance industry structure make it “hard to know how all of that will resolve itself as rates move to a more normal environment.”
But Capital One won’t have a problem when that happens. Crawford noted that it is no longer a monoline credit card company, claiming it had “one of the largest transformations in its balance sheet in the industry.” Capital One is “well-positioned for rising rates,” he concluded.
FOR THE FULL PRESENTATION CLICK HERE.
Robert Reilly, CFO, PNC Financial Services Group Inc (PNC), speaks at BancAnalysts Assn. of Boston Conference
November 07, 2014
Gordon Smith, JP Morgan Chase & Co. (JPM) Consumer/Community CEO, Speaks at BancAnalysts Assn. of Boston
November 10, 2014
David Turner, CFO of Regions Financial Corp (RF), Speaks at BancAnalysts Association of Boston Conference
November 10, 2014
Mark Graf, EVP/CFO of Discover Financial Services (DFS), Speaks at BancAnalysts Association of Boston Conference
November 10, 2014
Daryl N. Bible, CFO, BB&T Corporation (BBT), Speaks at the BancAnalysts Association of Boston Conference
November 07, 2014
