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ALM 101: Introduction to Asset/Liability Management – Part 1: ALM Goals & Approaches

Abrigo

JANUARY 11, 2022

Asset/liability management basics In part 1 of this "Introduction to ALM" blog series, learn the goals of asset/liability management and how it can help financial institutions. Takeaway 1 ALM in banking means managing the cash flows of assets and liabilities to increase profitability, manage risk, and maintain safety and soundness. .

Management

Management Meeting Capital Strategy

Bank Value: Here is a Better Way to Calculate and Manage

South State Correspondent

JANUARY 10, 2024

This article examines why the standard way to value a bank is flawed and how to have a better methodology. Banks often don’t know who their most profitable customers are, and if they do, they ignore the basics of targeting those customers and prospects with marketing, sales, and product management.

Management

Management Examples Marketing Millennials

3 Risks Asset/Liability Management (ALM) Addresses

Abrigo

JUNE 7, 2021

Risks ALM Addresses Will Affect Performance and Strategy Asset/liability management models and processes address credit risk, liquidity risk, and interest rate risk. . Would you like other articles on ALM in your inbox? Good asset/liability management, he says, “is knowing how much risk do we take.” recovery to date.

Management

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Webinars

Elevating Accounting Practices: The Power of Outsourcing and Automation in the Digital Age

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Model Risk Management: Regulatory Priorities and Best Practices

Abrigo

MAY 20, 2022

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? Model Risk Management in the spotlight. FDIC Update.

Risk Management

Risk Management Management FDIC Meeting

Managing Stagflation Credit Risk in Banking – Part III

South State Correspondent

JULY 5, 2022

In this article, we analyze why 75% LTV may not protect banks from credit risk on commercial loans and why there is only one source of loan repayment. . Many bankers responded that their loan-to-values (LTVs) are low and expect that the secondary source of repayment will protect the bank’s capital. Background.

Management

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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

MARCH 13, 2023

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). More importantly, the bank’s held-to-maturity (HTM) securities portfolio was $91.3B

Risk Management

Risk Management Management Community Bank Community

Effective model risk management and model validation in banking

Abrigo

AUGUST 1, 2022

Best practices for assessing models and managing risk Sound model development, implementation, use, and validation is especially important as CECL models debut. . Would you like other articles like this in your inbox? What are model risk management and model validation? Model governance overview. Federal guidance.

Risk Management

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Bank Product Profitability and Productivity

South State Correspondent

JANUARY 17, 2024

In our last article ( HERE ), we highlighted the methodology around why banks should calculate and drive value through customer profitability and product profitability. We focused mainly on customer profitability and used risk-adjusted return on capital as a proxy for profitability. increase in M/B. The answer is – most likely.

Study

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Cross-Selling and Upselling – 2 Drivers of Relationship Profitability

South State Correspondent

MARCH 19, 2024

In two previous articles ( here and here ) we discussed how loan size and loan term affect the profitability of commercial loans. In this article, we consider the common features of upselling and cross-selling. In this article, we consider the common features of upselling and cross-selling.

Community Bank

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ALM 101: Introduction to Asset/Liability Management-Part 4: Liquidity Risk

Abrigo

APRIL 15, 2022

ALM & Measuring Liquidity Risk at Banks and Credit Unions Regulatory agencies expect financial institutions to manage liquidity risk using processes and systems commensurate with the complexity, risk profile, and scope of operations. Would you like other articles like this in your inbox? This is the fourth post in a series. .

Management

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The top lending & credit risk blogs of the year

Abrigo

DECEMBER 22, 2023

Takeaway 2 The top lending and credit blog posts focused on the benefits of banking technology, interest rate management, and developing risk ratings. Takeaway 3 Articles specific to small community banks were among the most-read blogs, with best practices for construction lending at the top of the list.

Lending

Lending Risk Management Community Management

Defending the bank's capital levels

Abrigo

JANUARY 19, 2015

The Recession and its subsequent rate of bank failures underscore the need for banks of all sizes to invest in developing a capital plan. The Recession taught many institutions that whatever processes had been in place for managing capital were not sufficient. The result was insufficient capital. Forward-looking review 4.

Capital

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Go Where No Operations Department Has Gone Before – Instant Settlement

Perficient

MARCH 30, 2023

The front office is screaming down to the Settlement Office, “Operations, we need more capital!” Blockchain technology can be a solution to the batch processing issue that plagues trading desks having to wait on settlement confirmation; before having capital/securities available for trading. I’m giving it all we’ve got.

Operations

Operations blockchain Capital Security

Personal Capital Review: Free Tools and Paid Wealth Management

MyBankTracker

AUGUST 12, 2020

Personal Capital is an online wealth management concept that started in 2009. billion in assets under management with over 24,200 clients. Today, Personal Capital offers two sets of tools depending on whether you pay for their services or not. How Do Personal Capital’s Free Tools Work? This is done securely.

Tools

Tools Capital Management Taxes

How to Practice Loan Pricing Discipline

South State Correspondent

FEBRUARY 27, 2024

In this article, we would like to define loan pricing discipline and cover bid, why it matters, and demonstrate how most community banks currently are not using loan pricing discipline. Bankers need to manage credit relationships to ROA/ROE and not credit spreads. Community bankers need to practice realistic loan pricing discipline.

How To

How To Community Bank Community Management

10 Reports every bank and credit union should run NOW

Abrigo

JUNE 5, 2023

Banking reports to inform risk management and strategy These reports on capital, growth, and liquidity help financial institutions spot warning signs. They help manage and shape strategy in volatile economic and industry conditions. the Community Bank Leverage Ratio (CBLR) and the minimum Tier 1 leverage ratio).

Report

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Solve This Problem with Your Strategic Horizon

South State Correspondent

MARCH 14, 2024

In this article, we want to go deeper to show how by increasing your planning horizon, you can increase your long-term performance. This all compares to about a 40%+ return invested in improving processes (loan, branch, cash management, etc.) Bank management should, of course, strive to increase cash flow as soon as possible.

Innovation

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Building The Relationship Banking Model

South State Correspondent

MARCH 28, 2023

In a recent article ( here ), we discussed why banks that take risks to earn higher revenue demonstrate lower performance as measured by ROA. While in that blog, we specifically considered the risk-return tradeoff for credit risk; in a future article, we’ll consider interest rate risk.

Community Bank

Community Bank Community Management Marketing

The Status of Commercial Real Estate Values

South State Correspondent

JUNE 17, 2019

CRE UNDERWRITING Recent data, just released from Real Capital Analytics, shows that since the start of the year (month-end April), commercial real estate (CRE) has appreciated 2.6% In this article, we take a look at the details to help banks better manage their pricing and risk.

Analytics

Analytics Capital Marketing Data

Capital Market Assumptions

TrustBank

FEBRUARY 22, 2021

Therefore, our capital market assumptions are based on expectations for average returns over the next 10 years. Our risk management strategies provided the cushions we had expected during the market’s decline in 2020, with returns independent of the returns from both stocks and bonds. annualized over the next 10 years.

Capital

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What Relationship Pricing Means for Bank Performance

South State Correspondent

JUNE 30, 2023

There are several ways for bank managers to address this issue and better align relationship pricing with bank profitability. The Issue with Relationship Pricing and Profitability The US banking industry has been unable to consistently earn a return on capital equal to its average cost (approximately 11% over the last few decades).

Resources

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The role of bank directors in managing risk

Abrigo

APRIL 12, 2016

The FDIC is offering a fresh take on how a bank’s board of directors should understand and manage risk. Prudent oversight is rooted in the directors sending a clear message to staff that they value a strong risk management culture that includes a strong ethical culture,” the FDIC said. Evaluating risk management.

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How To Assign FTP Attribution to a Loan

South State Correspondent

OCTOBER 17, 2022

In a previous article ( HERE ), we discussed the concept of Funds Transfer Pricing (FTP), why systemically important banks and large regional banks incorporate FTP, and why community banks should also consider implementing FTP. In this article, we look at using FTP attribution to better understand lending profitability.

How To

How To Community Bank Community Capital

The top 10 2022 ALM resources for financial institutions

Abrigo

DECEMBER 23, 2022

Blog posts to help your asset/liability management (ALM) staff strategize for the future These ALM posts were the most popular in 2022. Would you like other articles like this in your inbox? Th e article is intended for the ALM rookie who wants to understand ALM basics: the process and its usefulness. For rookies and experts.

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Resources Risk Management Study Strategy

Top E.U. Firms Are Holding More Than $1 Trillion In Net Working Capital

PYMNTS

AUGUST 4, 2017

Financial analysts are fairly optimistic about Europe , but the latest Europe Working Capital Survey released by REL Consultancy, part of the Hackett Group, found the EU’s top 1,000 nonfinancial companies saw their cash conversion cycles slip as they hold onto more net working capital. The data, released Thursday (Aug. In the U.S.,

Capital

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The Bank Talent Acquisition Opportunity

South State Correspondent

NOVEMBER 8, 2022

Almost every bank has some form of “human capital management” in its top three challenges for the coming years. This article looks at the fantastic opportunity in talent acquisition that is right in front of banks. Talent abounds, and fintech’s loss can be your bank’s gain.

Capital

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Strategic Loan Refinancing for Profitability

South State Correspondent

OCTOBER 4, 2023

In an article last week ( Here ), we discussed how the higher-for-longer interest rate environment will affect the community bank sector. Profitability Reality at Community Banks In a recent article ( Here ), we used CAPM (capital asset pricing model) to calculate community banks’ cost of capital – which we conclude is now 12.50%.

Community Bank

Community Bank Community Capital Comparison

Amidst a Global Crisis, Cloud Technology Trends for 2021 Emerge

Perficient

DECEMBER 14, 2020

If your organization is looking to capitalize on cloud technology in 2021, here are a few trends to keep in mind. Serverless functions eliminate the need for server software and hardware management, allowing developers to focus on optimizing application code. The Public Cloud Market Will Surge.

Technology

Technology Trends Software Resources

Capital optimization for desk restructuring under FRTB

Insights on Business

MARCH 12, 2019

review of the capital requirements for market risk regulations, namely the Fundamental Review of the Trading Book (FRTB). It becomes effective in 2022, but banks should now, more than ever, implement the proposed changes in order to meet the deadline for reporting their Pillar I capital under the new methodologies.

Capital

Capital Regulation Strategy Operations

FTP – Another Bank Failure and Another Learning Opportunity

South State Correspondent

MAY 3, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending

Lending Capital Management Tools

FTP – Another Bank Failure and Another Learning Opportunity

South State Correspondent

MAY 2, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending

Lending Capital Management Tools

FTP – Another Bank Failure and Another Learning Opportunity

South State Correspondent

MAY 2, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending

Lending Capital Management Tools

JPMorgan Takes On Square And PayPal At The Point Of Sale

PYMNTS

OCTOBER 21, 2020

He added that instant funds can help SMBs better manage cash flow . Square now manages $100 billion in annual payments and has an $83 billion market capitalization, the article said. Before Square, launched by Twitter co-founder Jack Dorsey in 2009, SMBs had a hard time maneuvering point-of-sale (POS) card transactions.

Fintech

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Bank Credit Risk: A Risk-Return Analysis

South State Correspondent

MARCH 19, 2023

While every bank will take some level of credit, interest rate, liquidity, and operational risk, the question is this: Are banks in the business of taking risk to earn higher revenue, or are banks managing relationships and should avoid risk (and the higher return) when possible?

Analysis

Analysis Community Bank Operations Community

Using Data For Bank Event Lead Generation

South State Correspondent

JULY 6, 2022

In an earlier article, we discussed how we use “cost per impression” as a metric for planning, budgeting, and executing bank events that are specific for customer retention and branding. Banks usually find resounding success as providers of capital and cash management services if the event and approach are right.

Data

Data Management Conference Branding

How Loan Size Impacts Commercial Loan Profitability

South State Correspondent

MARCH 5, 2024

In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. First, larger loans are made to larger companies, and larger companies typically have more access to liquidity and capital, making them more credit-sound.

Community Bank

Community Bank Community National Lending

How Loan Size Impacts Commercial Loan Profitability

South State Correspondent

MARCH 5, 2024

In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. First, larger loans are made to larger companies, and larger companies typically have more access to liquidity and capital, making them more credit-sound.

Community Bank

Community Bank Community National Lending

How Your Bank Business Model Impacts Performance

South State Correspondent

NOVEMBER 14, 2023

In this article, we look at two very similar institutions, but ones with different bank business models, and show how their model impacts performance. Statistically, which bank business model gives managers the best chance to achieve their goals? The question is, how much will it pay off? The question is, which model is better?

Strategy

Strategy Technology Compliance Marketing

CRE risk: Lessons from recent earnings reports

Abrigo

AUGUST 2, 2023

Takeaway 3 Financial institution management can focus on mitigating risk and understanding portfolio dynamics when the analysis is streamlined. This article outlines a structured approach to ensuring management can confidently answer inquiries about the health of their CRE segments and related credit performance.

Report

Report Risk Management Lending Analysis

Managing Commercial Real Estate in a COVID-Ravaged Landscape

Gonzobanker

APRIL 23, 2020

Many providers catalogue news articles by looking for dirty words (bankruptcy, default, embezzlement) and action verbs (accused, convicted, indicted) to help cull the endless results of a Google search. The post Managing Commercial Real Estate in a COVID-Ravaged Landscape appeared first on Gonzobanker.

Management

Management Tampa Analytics Data

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

Abrigo

JUNE 11, 2021

Would you like other articles on asset/liability management in your inbox? Takeaway 1 Regulators stress sound risk management practices that include the ability to identify and measure interest rate risk (IRR). FDIC) noted in its 2021 Risk Review.

How To

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Fintech Deals to Watch: Fall Festivities

Gonzobanker

SEPTEMBER 21, 2023

Treasury management provider Dragonfly Financial Technologies launched independently from an ACI Worldwide sale. Alkami partnered with Clinc for conversational AI, Atomic for direct deposit switching and FINBOA for payment dispute management. Personal loan and credit card provider Avant secured funding from Ares Management Corporation.

Fintech

Fintech Software Illinois Lending

How To Do Better Against National Bank Lending Competition

South State Correspondent

FEBRUARY 20, 2023

Notable Tactical Differences in Lending Competition Many of the largest banks in the country consider themselves technology companies that manage and measure profitability and maintain relationships. Debt yield is an essential underwriting criterion in a low or declining capitalization environment.

National

National Lending How To Community Bank

Deposit Behavior In This Rate Cycle – Part III

South State Correspondent

MAY 18, 2022

In two recent articles, we reviewed the banking industry’s deposit behavior with regard to cost of funding earning assets (COF) ( HERE ), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle ( HERE ).

Community Bank

Community Bank Community Analysis Industry

ALM 101: Introduction to Asset/Liability Management – Part 1: ALM Goals & Approaches

Bank Value: Here is a Better Way to Calculate and Manage

Webinars

Trending Sources

3 Risks Asset/Liability Management (ALM) Addresses

Webinars

Model Risk Management: Regulatory Priorities and Best Practices

Managing Stagflation Credit Risk in Banking – Part III

Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

Effective model risk management and model validation in banking

Bank Product Profitability and Productivity

Cross-Selling and Upselling – 2 Drivers of Relationship Profitability

ALM 101: Introduction to Asset/Liability Management-Part 4: Liquidity Risk

The top lending & credit risk blogs of the year

Defending the bank's capital levels

Go Where No Operations Department Has Gone Before – Instant Settlement

Personal Capital Review: Free Tools and Paid Wealth Management

How to Practice Loan Pricing Discipline

10 Reports every bank and credit union should run NOW

Solve This Problem with Your Strategic Horizon

Building The Relationship Banking Model

The Status of Commercial Real Estate Values

Capital Market Assumptions

What Relationship Pricing Means for Bank Performance

The role of bank directors in managing risk

How To Assign FTP Attribution to a Loan

The top 10 2022 ALM resources for financial institutions

Top E.U. Firms Are Holding More Than $1 Trillion In Net Working Capital

The Bank Talent Acquisition Opportunity

Strategic Loan Refinancing for Profitability

Amidst a Global Crisis, Cloud Technology Trends for 2021 Emerge

Capital optimization for desk restructuring under FRTB

FTP – Another Bank Failure and Another Learning Opportunity

FTP – Another Bank Failure and Another Learning Opportunity

FTP – Another Bank Failure and Another Learning Opportunity

JPMorgan Takes On Square And PayPal At The Point Of Sale

Bank Credit Risk: A Risk-Return Analysis

Using Data For Bank Event Lead Generation

How Loan Size Impacts Commercial Loan Profitability

How Loan Size Impacts Commercial Loan Profitability

How Your Bank Business Model Impacts Performance

CRE risk: Lessons from recent earnings reports

Managing Commercial Real Estate in a COVID-Ravaged Landscape

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

Fintech Deals to Watch: Fall Festivities

How To Do Better Against National Bank Lending Competition

Deposit Behavior In This Rate Cycle – Part III

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