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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.

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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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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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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 core principles for directors have not changed materially since 1988, the FDIC said. Risk management culture What exactly is a risk management culture? Evaluating risk management.

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How to Measure Interest Rate Risk Effectively in Banks & Credit Unions

Abrigo

Measuring Interest Rate Risk Can Vary by Institution Interest rate risk measurement plays a key role in ensuring an institution's safety and soundness. Would you like other articles on asset/liability management in your inbox? FDIC) noted in its 2021 Risk Review. Measure long-term interest rate risk.

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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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