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What Banks Can Learn from the Republic Bank Failure

South State Correspondent

With the assistance of the FDIC, Fulton Financial acquired certain assets, debt and deposits of Republic Bank. A slew of articles have been published explaining the reason for this bank’s failure. This analysis does not require the ability to predict future interest rates or future cost of liabilities or cost of capital.

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Model Risk Management: Regulatory Priorities and Best Practices

Abrigo

Meet Model Risk Management Expectations Updates to the FDIC Risk Management Manual should steer institutions toward a model that manages risk and drives growth. Would you like other articles like this in your inbox? FDIC Update. Model Risk Management in the spotlight. Evaluating Leadership.

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Are de novos making a comback?

Abrigo

The FDIC paper The Entry, Performance, and Risk Profile of De Novo Banks published in April 2016 reports that the number of de novo bank failures and acquisitions annually has drastically declined since 2010, primarily due to the fact that new bank formations have become nearly inexistent. Some of these changes include: 1.

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How to Choose a Hedge Provider as a Bank

South State Correspondent

In this article, we will discuss what community banks should look for in a hedge provider, specifically in a loan-level hedging program. Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC). How Your Hedge Provider Can Be Relational .

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The role of bank directors in managing risk

Abrigo

The FDIC is offering a fresh take on how a bank’s board of directors should understand and manage risk. The regulator’s April edition of Supervisory Insights provides what the FDIC called a “refresher” on its Pocket Guide for Directors, the 1988 booklet outlining the basic duties and responsibilities of a bank’s board of directors.

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How Proposed Capital Rules Could Hit Credit Cards, Mortgages and More

The Financial Brand

This article How Proposed Capital Rules Could Hit Credit Cards, Mortgages and More appeared first on The Financial Brand. This article How Proposed Capital Rules Could Hit Credit Cards, Mortgages and More appeared first on The Financial Brand.

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Forecasting Cost of Funds Given Fed Moves

South State Correspondent

In this article, we analyze the industry’s cost of funding earning assets (COF) and track how community banks’ COF behaves relative to larger banks. In future articles, we will explain our modeling for community banks’ COF based on inflation, Fed Funds rates, consumer consumption and the Fed’s balance sheet runoff.