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Get your ducks in a row: HVCRE risk management

Abrigo

In a recent Sageworks webinar Robert Ashbaugh, senior risk management consultant at Sageworks, discusses High Volatility Commercial Real Estate (HVCRE) lending best practices. Ashbaugh’s presentation begins with a quick summary of why regulators care about HVCRE. How did we get here? What are HVCRE loans?

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[Guide] Breaking Down the FR 2052a Complex Institution Liquidity Monitoring Report

Perficient

The financial crisis of 2008 and 2009 highlighted the need for timely data to identify and monitor liquidity risks at individual firms, as well as in aggregate across the financial system, especially with respect to intra-company flows and exposures within a consolidated institution.

Report 309
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Why Diversification Fails at Banks

South State Correspondent

Regulators are focused on certain CRE concentrations and categories (such as office and multifamily). Prudent bankers look at the behavioral correlation of loan assets during normal times and spread risk across lower-correlated assets. in recessions (Leibowitz and Bova 2009). In fact, the correlation in REITs rises from 0.65

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Why Diversification Fails at Banks

South State Correspondent

Regulators are focused on certain CRE concentrations and categories (such as office and multifamily). Prudent bankers look at the behavioral correlation of loan assets during normal times and spread risk across lower-correlated assets. in recessions (Leibowitz and Bova 2009). In fact, the correlation in REITs rises from 0.65

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Stressing the importance of stress tests

Abrigo

The reports were positive: all 31 stressed banks “passed,” showing that they are stronger than they have been at any time since the tests began in 2009, the Fed reported. During examination time, regulators are increasingly looking at a bank’s stress testing processes and resulting capital plans. ” Blog Bank'

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Are you a bull or a bear, and how will it impact your planning for 2020 and beyond?

Gonzobanker

Risk Management. Risk management was never out, but the level of investment and emphasis we saw during the early part of the 2008-2009 crisis lessened during the past four to five years. Regulators are now ramping that back up, and model risk management focused on portfolio risk is going to top the list.

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What's With Regulator Agita Over Bank Commercial Real Estate Lending?

Jeff For Banks

And regulators are getting anxious. Reading between the lines, this bank is likely over the CRE guidance levels, and were probably getting grief from their regulators about it. But isn't fast growth by itself an indicator of increased risk of failure, regardless of the loans that fueled the growth? Anxiety, anxiety, anxiety.

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