Abrigo

MARCH 21, 2024

Enterprise value, or the fair value of the acquired credit union, becomes the imputed “purchase price” of the transaction and acts as the baseline in the purchase price allocation exercise for goodwill determination. Enterprise value considers more than just the book value of a credit union's assets and liabilities.

Lending 221

Lending Analysis Exercises Risk Management 221

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.

Management 150

Management FDIC Community Risk Management 150

Abrigo

JANUARY 12, 2016

During the risk rating process, the lender is determining the borrower’s ability to repay the loan and assessing the potential volatility of future loan payments. Finally, a risk rating can help the lender determine if they will reprice or re-structure the loan when it comes time for renewal.

System 150

System Risk Management Management Exercises 150

Abrigo

SEPTEMBER 5, 2023

Non-recourse loans While the bank historically has not experienced excessive levels of charge-offs due to loans not having one or more guarantors, there is considerable evidence to show that the options available to resolve a problem situation, as well as the costs incurred to exercise such options, are adversely affected by the lack of guarantees.

Policies 195

Policies Lending Risk Management Examples 195

BankUnderground

APRIL 13, 2023

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 114

Capital Policies Risk Management Maine 114

BankUnderground

JANUARY 12, 2023

This in turn means greater risk of ‘debt deleveraging’ by heavily indebted households and firms, who may be forced to reduce their spending in order to meet their debt obligations, potentially amplifying any recessionary effects. However, this effect is small in our model given the size of banks’ capital buffers.

Policies 137

Policies Capital Exercises Lending 137

South State Correspondent

AUGUST 21, 2022

Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. This capital ratio is used to assess the possible riskiness of a hedge provider.

How To 195

How To Community Bank Community FDIC 195

Independent Banker

APRIL 30, 2022

For this and other reasons, now is a good time to review and refresh articles, bylaws and committee charters to ensure resilience and bolster risk management. But if they see it as a risk management tool, it’s a game changer. He also recommends not updating the resiliency document as only a “table-top exercise.”

Oregon 91

Oregon Community Bank Community Meeting 91

South State Correspondent

MARCH 15, 2023

It turns out that confidence is more valuable than capital. 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. The ratio would provide a bank’s current core capital position to risk-adjusted assets.

social media 195

social media FDIC Branding Management 195

BankUnderground

APRIL 8, 2021

Without adequate mitigation, such events may result in claims handling strain and capital risk for insurers. That raises a challenge for insurers: should they have adequate risk mitigation measures in place for periods that are both windy and wet? How does the windstorm – inland flood correlation impact insurers’ capital?

Capital 120

Capital Study Risk Management Analysis 120

Abrigo

MAY 8, 2015

Curry added, “We have recommended authorizing a basic set of powers that both federal savings associations and national banks can exercise, regardless of their charter, so that savings associations can change business strategies without moving to a different charter.”

Community Bank 150

Community Bank Community How To Meeting 150

Abrigo

OCTOBER 9, 2019

Stress testing gives an institution a serious look into their capital and reserves, and if they possess enough of each to remain viable, should a recession hit. Both CECL and stress testing take top-down and bottom-up approaches to test the capital adequacy of a financial institution.

Data 150

Data Exercises Software Tools 150

South State Correspondent

APRIL 3, 2023

Failing to understand and account for these options can lead to ineffective modeling and risk management. Further, the bank, and customer, have other, non-interest rate reasons for exercising their option, most notably safety. We are in a period of very high volatility, and the full impact of this optionality may not be correct.

social media 195

social media Community Bank Analysis Training 195

Gonzobanker

MAY 8, 2020

25% 140 banks will have capital levels that have fallen below 8%. So far, bankers have taken comfort in the soundbite that “this crisis is different” because of the strong capital levels and risk management rigor that has developed since the Great Recession. Benchmark every function and drive excellence.

Lending 97

Lending Analytics Analysis Capital 97

CB Insights

NOVEMBER 2, 2017

It’s been nearly a decade since the financial crisis exposed how a weak risk management framework and lack of governance can almost permanently debilitate even one of the strongest capital markets. Regulators are exercising their new oversight by increasing the costs of non-compliance.

Compliance 72

Compliance Regulation blockchain Software 72

FICO

MARCH 25, 2020

There have been significant numbers of forbearance requests from customers, and C&R teams will need to exercise discipline regarding when and how forbearance is provided. For example, BaFIN (the Federal Financial Supervisory Authority in Germany) is offering some freedom in their assessment of capital requirements.

Operations 40

Operations Exercises Security Data 40

FICO

MAY 18, 2020

Organisations are being permitted to use their capital buffer to help in the current situation. Organisations need to be agile to incorporate the changes and they will need to revisit their models to rate the real risk. Management are reminded that the current very fluid situation is hindering reliable forecasts.

Regulation 52

Regulation Operations Management Data 52

Lex Sokolin

DECEMBER 31, 2020

a nice, detailed set of thinking on Yearn, the most advanced tech that DeFi has to offer: Mergers and Acquisitions in open-source Decentralized Finance, and its $5 billion market capitalization. Much of this is an exercise in grim arithmetic. It’s got your yield farming and your Pickles and Creams. Slowing GDP growth by 1.5%

Fintech 52

Fintech Bitcoin blockchain Google 52

Lex Sokolin

DECEMBER 31, 2020

a nice, detailed set of thinking on Yearn, the most advanced tech that DeFi has to offer: Mergers and Acquisitions in open-source Decentralized Finance, and its $5 billion market capitalization. Much of this is an exercise in grim arithmetic. It’s got your yield farming and your Pickles and Creams. Slowing GDP growth by 1.5%

Fintech 52

Fintech Bitcoin blockchain Google 52

FICO

FEBRUARY 12, 2023

The most popular posts in our Customer Development category dealt with digital banking, optimizing credit line increases, loan pricing and machine learning for credit risk models. With this approach, loan pricing is not an isolated exercise. Instead, loan prices are optimized within the context of the entire customer offer.

Digital Banking 52

Digital Banking eBook Analytics Customer Experience 52

PYMNTS

DECEMBER 16, 2019

Instead of going to the gym, they’re climbing on their Peloton bikes or exercising in front of their Magic Mirrors with trainers and others who are part of those digital fitness communities. And instead of investing in tickets to go to a game, they’re investing in smart flat-screen TVs to watch live sporting events at home with friends.

Payments 180

Payments Innovation Cards Google 180

PYMNTS

JANUARY 1, 2020

Instead of going to the gym, they’re climbing on their Peloton bikes or exercising in front of their Magic Mirrors with trainers and others who are part of those digital fitness communities. And instead of investing in tickets to go to a game, they’re investing in smart flat-screen TVs to watch live sporting events at home with friends.

Innovation 174

Innovation Cards Google Payments 174

Gonzobanker

FEBRUARY 21, 2017

More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. The fraudulent activity of several Wells Fargo employees is a sobering reminder that governance and risk management shouldn’t simply be “check the box” exercises.

Regulation 71

Regulation Risk Management Management Industry 71

Gonzobanker

FEBRUARY 21, 2017

More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. The fraudulent activity of several Wells Fargo employees is a sobering reminder that governance and risk management shouldn’t simply be “check the box” exercises.

Regulation 60

Regulation Risk Management Management Industry 60

South State Correspondent

JULY 29, 2024

As federal borrowings increase, those borrowings crowd out (reduce) capital available for private investments. A smaller supply (of private capital) increases required return on capital and interest rates. Further, orthodox economic understanding is that as federal debt grows, general interest rates in the economy rise.

Community Bank 195

Community Bank Community US Taxes 195