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Community Bank Outlook: Challenges and Opportunities in 2021 and Beyond

Abrigo

How can community financial institutions thrive in 2021? Community banks provide unique and important banking services for their customers, but they also face significant obstacles. Takeaway 1 Community banks play an important role in the economy and their communities, but they face significant obstacles.

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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. Portfolio Risk & CECL. Asset/Liability.

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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.

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Expanding credit portfolios: 3 Growing pains

Abrigo

Community banks are expanding their loan portfolios to include more small business loans, according to the most recent Community Bank Performance report by the FDIC. Blog Bank Credit Union' Loans across categories increased, with commercial and industrial loans growing at the fastest rate, roughly 5.3

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Stress testing revisited to avert risk and improve risk ratings

Abrigo

According to the OCC, institutions that have incorporated stress testing into their planning typically demonstrate an ability to withstand negative market developments more effectively than other financial institutions as a result of these beneficial risk management practices.

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What's With Regulator Agita Over Bank Commercial Real Estate Lending?

Jeff For Banks

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. Maybe sub out an economist or two.

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