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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

While we will cover the general lessons HERE , in this article, we wanted to focus on the root cause – how and why interest rate risk caused the second-largest bank failure in US history (Washington Mutual was the largest in 2008). Notably, most community banks’ duration risk is in the loan portfolio.

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Washington Watch

Independent Banker

Community Bankers Chosen as CFPB Advisors. The Consumer Financial Protection Bureau named nine community bankers to serve new terms on the bureau’s Community Bank Advisory Council. Paul Mackin , president and CEO at Think Mutual Bank in Rochester, Minn.; in Lowell, Mass.; in Lowell, Mass.;

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The Two Things Keeping PPP Funds From Flowing Into SMB Bank Accounts

PYMNTS

I think they’re missing a step there in Washington,” Edwards said. But while Speight agreed that sounds like a terrific way to manage the program — the reality is a bit different — at least right now since the guidance on this topic for bankers has been vague. So how to fix the log jam.

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Rebeca Romero Rainey: Shifts in lending

Independent Banker

While it has had some benefits, like stronger risk management for our banks, it has made the customer process much more daunting. But community banks have adapted to address that shift. We, as community bankers, will continue to adapt to meet our customers’ needs. Where I’ll be this month.

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Regulation and Compliance: Ready for Review

Independent Banker

This is particularly true for community banks preparing to undergo their next regulatory safety and soundness or compliance examination. Regulators and industry consultants agree that community banks are generally doing a great job handling their regulatory oversight and requirements.

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

South State Correspondent

Banks take a pool from 2018, as an example, and then track runoff to the present. Utilizing this straightforward linear regression and decay analysis, you get something close to the profile below for the average community bank in the U.S.: Silicon Valley Bank presents a new high in lows with $42B, or 24% of liabilities.

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CFPB announces advisory committee members

CFPB Monitor

Last week, the CFPB announced the appointment of new members to its advisory committees: Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC). Jean Setzfand, Senior Vice President, AARP (Washington, DC). Bank (Minneapolis, MN).

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