Capital Exercises FDIC Lending 
South State Correspondent
AUGUST 21, 2022
Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC).
Abrigo
NOVEMBER 11, 2019
ALM | 4 minute read Key Takeaways Many financial institutions view asset/liability management as a "check-the-box" regulatory exercise. 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. ALM seen as checking the box.
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Abrigo
SEPTEMBER 5, 2023
unsecured lending is bad rather than unsecured lending should only be extended to high pass risk rated credit). As the FDIC said recently: Exceptions to policy should be few in number and properly justified, approved, and tracked. a significant capital injection into the borrower, or other collateral such as liquid assets).
Jeff For Banks
AUGUST 2, 2014
Although our Tier 1 leverage ratio is greater than 10%, you criticized us for our stress scenarios contained in our capital plan. Aside from the clear lack of analytic rigor you exercised to come to this conclusion, it is important to remind you that estimating future negative events that impact our capital is guesswork.
Abrigo
MARCH 17, 2022
Takeaway 3 Using stress testing scenarios helps banks and credit unions determine whether estimated loss rates will push projected capital levels below regulatory thresholds. Banks and credit unions must be able to adjust when necessary to ensure viability of the institution and the ability to supply capital to their local economy.
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