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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

Based on the bank’s own filing, and like many banks, SVB did not deploy hedging instruments to manage its securities duration risk. The SVB Takeaway For Community Banks Community banks should continue to monitor their deposit base, liability sensitivities, and duration risks.

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Fair Value Accounting and Silicon Valley Bank Failure

South State Correspondent

Some blame the dilution of the Dodd-Frank provisions, others the lack of oversight by regulators, and others still blame social media for exacerbating the deposit run. The root cause of Silicon Valley Bank’s (SVB) failure is poor risk management – plain and simple.

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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. Velocity and Residual Risk.

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15 Twitter accounts every bank executive should follow

Abrigo

The ABA has a new report out on how banks are using social media, and much of the report focuses on using Twitter, Facebook, LinkedIn and the like to boost customer service, make connections in the community and recruit staff. 14) @News_CUInsight – CUInsight is an independent source of news on the credit union community.

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Non-Maturity Deposits – A New Machined Learned Framework For ALM

South State Correspondent

While there have always been problems in banks’ asset-liability models (ALM) and liquidity stress test models, the current environment exacerbates this problem. As a result, most banks are overestimating their liability sensitivity and, thus, their deposit value. This reduces the duration of these non-maturity deposits.

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The Current Banking Crisis – 10 Not So Apparent Lessons

South State Correspondent

While we wrote about the root cause of the failure of Silicon Valley Bank (SVB) HERE , the lessons of the current banking crisis go beyond interest rate risk management. While interest rate risk caused the most significant impact on value, several other factors contributed to the terminality of each bank that was closed.

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It Started with a Tweet #SocialMedia #Banks @ICBA

Independent Banker

A status update on banks and social media. According to a statistic released as part of the ICBA 2014 Top 50 Community Bank Leaders in Social Media, nearly 2,500 banks have a Facebook or Twitter presence, and the numbers continue to exponentially grow. .* It is no wonder banks are joining in.