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The importance of balancing loan portfolio growth and risk management

Abrigo

But how can this growth be managed appropriately? CEIS Review , a New York-based bank consulting firm, highlights the shift in a recent article. Community banks certainly want to remain conservative with risks and follow regulations.

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10 Reports every bank and credit union should run NOW

Abrigo

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).

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Bank IT Spending – Use These Metrics to Improve Performance

South State Correspondent

Bank IT Spending as a Percent of Revenue Our favorite go-to metric is to benchmark IT spending against total revenue. Technology-forward banks spend as much as 16.4% of revenue on technology, while non-tech banks spend as little as 3.9%. Below are some of our favorite questions to discuss to ensure bank alignment.

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The Velocity of Risk – What Bankers Need To Know

South State Correspondent

Banks that are looking to enhance their risk management practices should consider incorporating the concept of the velocity of risk into their enterprise-wide risk management practices. Some risks occur slowly; others strike quickly and hard. Optimizing Risk. The Comparison of Risk.

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Uncovering the Hidden Efficiencies in Loan and Deposit Operations

Gonzobanker

Peer comparison metrics can be a valuable tool for evaluating staffing levels relative to production and portfolio volumes. One of Cornerstone’s community bank clients uses RPA to reverse temporary daily POS limit increases, which its related bank system does not permit, eliminating a formerly manual daily process.

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Predicting the Next Banking Crisis Is a Fool’s Game. Not Learning From the Last One: Equally Foolish

Jeff For Banks

Between 1980 and 1995, more than 2,900 banks and thrifts with collective assets of more than $2.2 More recently and by comparison, the mortgage meltdown and subsequent global financial crisis took down more than 500 banks between 2007 and 2014, with total assets of nearly $959 billion. trillion failed.

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5 Reasons to Start CECL Implementation Now

Abrigo

Banks and credit unions also need to determine what data has been tested or historically reconciled to make sure that gaps and inconsistencies do not cause problems. Portfolio Risk & CECL. Portfolio Risk & CECL. 4 Steps for Integrating CECL and Other Risk Management Models. Portfolio Risk & CECL.

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