BankUnderground

JANUARY 12, 2023

This in turn means greater risk of ‘debt deleveraging’ by heavily indebted households and firms, who may be forced to reduce their spending in order to meet their debt obligations, potentially amplifying any recessionary effects. However, this effect is small in our model given the size of banks’ capital buffers.

Policies 116

Policies Capital Exercises Lending 116

Abrigo

OCTOBER 9, 2019

Stress testing gives an institution a serious look into their capital and reserves, and if they possess enough of each to remain viable, should a recession hit. Both CECL and stress testing take top-down and bottom-up approaches to test the capital adequacy of a financial institution. Portfolio Risk & CECL. Credit Risk.

Data 150

Data Exercises Software Tools 150

Lex Sokolin

DECEMBER 31, 2020

Decentralized Finance, Blockchain, and CBDCs Why Peer-to-Peer models fail against oligopoly, with Lending Club shutting down p2p platform, Seedrs/Crowdcube merging, and Morgan Stanley buying Eaton Vance for $7B. the Lending Clubs) end up becoming banks and seeking the thing it looked like they would disrupt. They all (i.e.,

Fintech 52

Fintech Bitcoin blockchain Google 52

Lex Sokolin

DECEMBER 31, 2020

Decentralized Finance, Blockchain, and CBDCs Why Peer-to-Peer models fail against oligopoly, with Lending Club shutting down p2p platform, Seedrs/Crowdcube merging, and Morgan Stanley buying Eaton Vance for $7B. the Lending Clubs) end up becoming banks and seeking the thing it looked like they would disrupt. They all (i.e.,

Fintech 52

Fintech Bitcoin blockchain Google 52

Abrigo

MARCH 17, 2022

Takeaway 3 Using stress testing scenarios helps banks and credit unions determine whether estimated loss rates will push projected capital levels below regulatory thresholds. Regardless of regulatory pressure, measuring and managing key risks are the cornerstone of community financial institutions’ enterprise risk management (ERM) programs.

Capital 195

Capital Regulation Risk Management Community 195

Gonzobanker

MAY 8, 2020

25% 140 banks will have capital levels that have fallen below 8%. So far, bankers have taken comfort in the soundbite that “this crisis is different” because of the strong capital levels and risk management rigor that has developed since the Great Recession. Practice the art of surgical lending.

Lending 104

Lending Analytics Analysis Capital 104

Abrigo

JANUARY 12, 2016

During the risk rating process, the lender is determining the borrower’s ability to repay the loan and assessing the potential volatility of future loan payments. Finally, a risk rating can help the lender determine if they will reprice or re-structure the loan when it comes time for renewal.

System 150

System Risk Management Management Exercises 150

FICO

FEBRUARY 12, 2023

The most popular posts in our Customer Development category dealt with digital banking, optimizing credit line increases, loan pricing and machine learning for credit risk models. The business model here needs to focus on a strategy that balances lending growth while keeping risk in check.

Digital Banking 52

Digital Banking eBook Analytics Customer Experience 52

Gonzobanker

FEBRUARY 21, 2017

More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. The fraudulent activity of several Wells Fargo employees is a sobering reminder that governance and risk management shouldn’t simply be “check the box” exercises.

Regulation 73

Regulation Risk Management Management America 73

Gonzobanker

FEBRUARY 21, 2017

More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. The fraudulent activity of several Wells Fargo employees is a sobering reminder that governance and risk management shouldn’t simply be “check the box” exercises.

Regulation 60

Regulation Risk Management Management America 60