Abrigo

NOVEMBER 11, 2019

An extreme focus on using ALM to manage the risk of rising rates means some FIs overlook using ALM to grow earnings and capital, putting them at risk of underperformance. FDIC FIL-46-2013 October 8, 2013. ALM should be used to create value in all interest rate environments. ALM seen as checking the box.

Management 150

Management FDIC Community Risk Management 150

South State Correspondent

AUGUST 21, 2022

Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC). We see substantial risk to community banks in dealing with non-FDIC hedge providers or those not offering QFC protection – think Lehman Brothers. Conclusion.

How To 195

How To Community Bank Community FDIC 195

CFPB Monitor

SEPTEMBER 12, 2022

To achieve the safety and soundness of banks and stability of the financial system, Barr intends to focus on mitigating evolving risks through regulatory capital reform, resolution planning for large banks, and revisiting the criteria used by the Fed to analyze and approve large bank mergers.

System 78

System Capital Regulation Analysis 78

Abrigo

MARCH 25, 2020

Key Takeaways Banking regulators say short-term, COVID-19-related loan modifications shouldn't automatically be categorized as TDRs. Regulators also announced other guidance tied to reporting and risk-based capital rules. Regulators also announced other guidance tied to reporting and risk-based capital rules.

FDIC 150

FDIC Regulation Exercises Community 150

Abrigo

APRIL 21, 2020

Key Takeaways Financial institutions have 10 calendar days to disburse PPP loans To address financial institutions’ liquidity and leverage concerns, regulators have helped to facilitate lending. PPP loans carry a 0% risk weighting, meaning they don’t count against the institution from a risk-based capital standpoint.

Lending 195

Lending Capital Minnesota FDIC 195

Jeff For Banks

MAY 20, 2017

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. To remind readers, in 2006 the OCC, Federal Reserve, and FDIC issued joint interagency Guidance on Concentrations in Commercial Real Estate Lending.

Lending 60

Lending Regulation Community Community Bank 60

Abrigo

JUNE 23, 2017

The desire to avoid examiner scrutiny may tempt some financial institutions to set the bar high when it comes to credit and liquidity risk management policy limits, but regulators are discouraging this approach. Learn more>> I mage credit: Setu Anand via Unsplash.

Policies 150

Policies Risk Management Survey FDIC 150

Abrigo

NOVEMBER 9, 2022

The 2022 CECL implementation survey is the fourth such analysis since 2017 by Abrigo, which has worked with hundreds of financial institutions on CECL implementation. Use a software tool [and] ensure your auditors and regulators are in the loop on progress.” Managing capital levels amid credit stress: Advice for credit unions.

Survey 195

Survey Software Resources Meeting 195

Abrigo

SEPTEMBER 5, 2023

As the FDIC said recently: Exceptions to policy should be few in number and properly justified, approved, and tracked. Generally speaking (subject to Regulation B), business loans should be guaranteed by the principals of the borrower. a significant capital injection into the borrower, or other collateral such as liquid assets).

Policies 195

Policies Lending Risk Management Examples 195

Jeff For Banks

OCTOBER 29, 2016

If the branch does not meet profit objectives within a reasonable period represented in the original analysis to open it, close it. Because of over-investment in areas such as regulation and unprofitable branches, we under-invest in elevating the abilities of our employees to serve as advisers to customers, as highlighted above.

Training 60

Training FDIC Community Resources 60

Jeff For Banks

JULY 31, 2017

Which is very close to the 3-year annual net income growth for all FDIC insured banks. Banks are capital intensive. Risk management and the legions of regulators work in tandem to limit growth. But would such an analysis of other industries equate 56% of an industry's p/e to it's tangible book value? Which may be true.

Regional 60

Regional FDIC Industry Risk Management 60

Jeff For Banks

JANUARY 3, 2012

When performing ratio analysis to determine a company''s profitability we should remember that a ratio has at least two data points: a numerator and a denominator. It was in the aftermath that capital, the denominator in the return on equity calculation, resumed its place as king. until the financial crisis of 2007-08.

Atlanta 89

Atlanta Capital FDIC US 89

Abrigo

DECEMBER 22, 2023

Abrigo's most popular risk management blogs over the last 12 months cover topics that continue to catch the attention of professionals and regulators. Probability of default and how it's used for expected loss Probability of Default/Loss Given Default analysis is a method used by larger institutions to calculate expected loss.

Risk Management 221

Risk Management Regulation Management Lending 221

Abrigo

JANUARY 29, 2020

Key Takeaways The FDIC issued an advisory to FIs encouraging safe and sound lending practices in today's ag lending environment. FDIC) issued an advisory to financial institutions encouraging exceptionally safe and sound lending practices in agricultural lending. On January 28, the Federal Deposit Insurance Corp.

Lending 195

Lending How To FDIC Survey 195

Abrigo

MARCH 13, 2023

Takeaway 2 A good deposit analysis helps institutions do more than simply understand how to manage non-maturity balances in the ALM model. Boy, did that impact capital ratios. Do you get that from your deposit analysis ? It tanked the value of the “liquid investments” and put pressure on their tangible equity capital.

Strategy 195

Strategy Lending Security Analysis 195

Abrigo

MARCH 17, 2022

The Stress Test Scenarios for Big Banks Are Useful for Smaller Institutions' Own Tests Banking regulators recently released the 2022 scenarios for upcoming stress tests by the biggest banks. But small banks and credit unions can benefit from the stress test scenarios, too. Related Subhead. Why financial institutions stress test.

Capital 195

Capital Regulation Risk Management Community 195

PYMNTS

JANUARY 31, 2019

is set to see its first new community bank in decades, as the Federal Deposit Insurance Corporation (FDIC) lent its approval for MOXY Bank to launch in Washington, D.C. The FDIC’s announcement said a private placement offering will raise at least $25 million for the bank ahead of its launch. Bloomberg listed Casey G.

Community Bank 122

Community Bank Community FDIC Marketing 122

FICO

FEBRUARY 23, 2017

In the first two weeks of the new administration, President Trump took several steps aimed at slowing down as well as scaling back current and future regulations. Out of the gate, the Trump administration made good on its promise to curtail the pace of federal regulations. Regulatory Reform through Memorandum and Executive Orders.

FDIC 40

FDIC Regulation United States Tools 40

FICO

JULY 17, 2017

Similar efforts, further crowding the legislative calendar, may be pursued if the CFPB moves forward with issuing its final small-dollar lending regulation. The Act and accompanying regulations have significantly chilled the delivery of important, non-telemarketing customer-centric messages via cellphones. So where does that leave us?

US 40

US Leadership Regulation Policies 40