While it will possibly take months and even the rest of the year to see the full shakeout, April 2025 was a laboratory for market efficiency. Some might contend there was an element of ruthlessness in the activity. Starting even before the Trump administration’s trade policy tariffs went into effect on April 2, the “Bond Vigilantes,” a nebulous gang of institutional debt investors, started shooting up the place.

In periods of uncertainty, the only certainty is that risk increases. In statistical analysis risk is defined by a growing variance level. The wider the swings recorded between a bottom and top boundary determines the risk level. Recently, we have all watched the stock market vary widely on a daily and week-to-week basis. Part of the fluctuations have been caused by the talk of and decisions made regarding international trade tariffs. Understanding how the current policy movements surrounding the tariffs affect your bank is critical right now.

In periods of uncertainty, the only certainty is that risk increases. In statistical analysis risk is defined by a growing variance level. The wider the swings recorded between a bottom and top boundary determines the risk level. Recently, we have all watched the stock market vary widely on a daily and week-to-week basis. Part of the fluctuations have been caused by the talk of and decisions made regarding international trade tariffs. Understanding how the current policy movements surrounding the tariffs affect your bank is critical right now.

As the economic landscape continues to shift rapidly, the ability to navigate unforeseen macroeconomic changes is essential for a bank’s long-term success and the preservation of franchise value.

It’s not news that the number and severity of natural disasters in the U.S. has been increasing significantly in recent years. These events can be personally and economically devastating to local communities, and it’s important that community banks are prepared to help both themselves and the people they serve.

The community banking industry is undergoing a significant digital transformation. While large financial institutions have long used data analytics to drive customer engagement, community banks are now recognizing the value and importance of leveraging information and data to strengthen relationships with their customers.

ICBA and community bankers focused much of our attention in 2023 on differentiating our industry in the wake of failures at larger institutions, while 2024 was all about elevating our positions on key issues at a time of intense political debate.

The importance of artificial intelligence (AI) literacy cannot be overlooked as AI is rapidly transforming the banking industry. As this technology evolves, so do the risks and opportunities.