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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

In the case of SVB, liquidity risk was primarily the result of interest rate risk exacerbated by customer concentration. The failure of SVB is the first example we can recall since the Savings and Loan crisis, where a bank failed mainly because of a duration mismatch between assets and deposits.

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If You Are Tired of Being Transactional, You Need A Hedge Program

South State Correspondent

An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. Community banks do this profitably by turning transactional accounts into relationships.

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If You Are Tired of Being Transactional, You Need A Hedge Program

South State Correspondent

An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. Community banks do this profitably by turning transactional accounts into relationships.

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Why community banks should partner with fintechs

Independent Banker

With consumer expectations seeming to evolve faster every year, community banks could consider partnering with a fintech to keep up with technological innovation. Those conversations, he says, centered around whether community banks could compete against this brash group of newcomers. Photo by Pogonici/iStock. Quick Stat.

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How to Choose a Hedge Provider as a Bank

South State Correspondent

Last week we wrote about loan-level vs. balance sheet hedging for community banks and provided our loan proposal generator ( HERE ). We compared and contrasted the two strategies and sized the market for community banks. A community bank may transact one or only a few balance sheet hedges over many years.

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Understanding The Current Yield Curve Shape

South State Correspondent

The current yield curve presents various challenges for community bankers for revenue generation and risk management. In this article, we will outline the significance of the yield curve shape and what it may portend for community banks. Three main theories explain the shape of the yield curve.

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Are you diversifying your portfolio appropriately?

Abrigo

It is only natural for community banks to have loan concentrations that result from the market(s) they serve and the markets they pursue. In today’s times, a high commercial real estate (CRE) concentration is often the result of community banks pursuing opportunity in the market. Blog Bank Credit Union'