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Guidance on TDRs Eases Coronavirus Workout Pressures

Abrigo

Key Takeaways Banking regulators say short-term, COVID-19-related loan modifications shouldn't automatically be categorized as TDRs. Regulators also announced other guidance tied to reporting and risk-based capital rules. Regulators also announced other guidance tied to reporting and risk-based capital rules.

FDIC 150
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How to Choose a Hedge Provider as a Bank

South State Correspondent

Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. FDIC regulations afford QFCs certain rights and protections that will accrue to the hedge end-user (a community bank or a community bank borrower) if the hedge provider fails and the FDIC becomes the receiver.

How To 195
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How to reduce the regulatory burden on community banks

Abrigo

There are more than 6,000 banks and thrifts under $10 billion in assets and they are often less equipped to deal with complexities brought by additional regulations. He commented that regulations are likely to generate at least somewhat of a burden, but many provide public benefits that offset any burden imposed on community banks.

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Why now is the time to update your bank’s corporate governance

Independent Banker

During the pandemic, many community banks needed to change how they operated. It can clarify roles and responsibilities, encourage timely communication and help community banks operate more efficiently. He also recommends not updating the resiliency document as only a “table-top exercise.” Photo by Alita/Stocksy. Quick Stat.

Oregon 91
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Connecticut federal court allows CFPB claims to proceed against mortgage company and principals for alleged licensing and other violations

CFPB Monitor

The CFPB’s lawsuit names as defendants 1st Alliance Lending LLC and three individuals consisting of the company’s CEO, President of Production, and President of Capital Marketing. The duties performed by the SCs/HLCs required them to hold a mortgage originator license in every state in which 1 st Alliance operated.

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Planes, boats and automobiles: a discussion of machine learning with telematics data

BankUnderground

The advances in mathematical algorithms and computational power have enabled new applications that are transforming the way the insurance industry operates – in particular the applications of machine learning (ML) and data Science (DS). Currently insurers make little use of this data in their reserving or capital setting.

Data 85
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What if it’s a perfect storm? Stronger evidence that insurers should account for co-occurring weather hazards

BankUnderground

By better modelling how this relationship might raise insurers’ capital risk we can more firmly argue that insurers’ model assumptions should account for key dependencies between perils. Taking whole years, we investigated how the level of capital required to remain solvent is affected. Outputs are shown in Table A.

Capital 78