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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

While we will cover the general lessons HERE , in this article, we wanted to focus on the root cause – how and why interest rate risk caused the second-largest bank failure in US history (Washington Mutual was the largest in 2008). Equally important is the bank’s securities duration, as shown in the graph below.

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Today’s Cyber Risk Management

Cisco

Beginning with the bursting of the dot-com bubble, and more recently, the global COVID-19 pandemic, these events created significant volatility in stock prices resulting in increased market risk. In between these events, a different crisis began in the US sub-prime lending market. Regulatory Agencies Step Up.

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Risk management in the cloud: A strategic imperative

Insights on Business

But while mobile devices give us great power and convenience, they also create new security and privacy challenges. Three pillars of cyber risk management on the cloud. A properly deployed and administered solution for managing cyber risk consists of three main pillars.

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U.S. Regulations to Consider When Managing a Cryptocurrency Fund

Perficient

However, in this blog, we will discuss the regulatory landscape surrounding cryptocurrency from an asset manager or fund manager perspective. We’ll then move to the federal level, seeking regulatory guidance as to whether digital tokens are securities under the jurisdiction of the U.S. Central Bank Digital Currency (CBDC) ).

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What Banks Can Learn from the Republic Bank Failure

South State Correspondent

Also, interest rates are not high by historical comparison (especially when eliminating the pandemic monetary response), and bank managers’ job is to manage uncertatiny (also called risk). The Root Causes It appears to us that Republic Bank did not properly manage its duration and interest rate risk.

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How Federal Debt May Impact Banking

South State Correspondent

Secular changes occur over many business cycles, tend to be slow-moving, and are more difficult to manage with business strategy. However, because bank capital has an average expected life of 15 to 20 years, bank managers must gauge and react to secular changes that will impact their business model.

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Banking Third Party Risk Management Requirements are a Big and Expensive Ask

Celent Banking

Source: Oliver Wyman, Celent Celent, through its work with Oliver Wyman, estimates the cost to US financial institutions of undertaking due diligence and assessment of new third party engagements to be ~ $750 million per year. The top ten US banks average between 20,000 and 50,000 third party relationships.