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Generative AI and the new loan review process The evolution of banking and riskmanagement over the past few decades has been nothing short of remarkable. Generative AI in credit riskmanagement is the latest step forward , offering a transformative approach to loan review. Data security is also a major concern.
Stress testing, monitoring are essential Financial institutions should challenge assumptions about CRE risk while also watching for red flags as they manage the CRE portfolio. WATCH Takeaway 1 Banks and credit unions are critical sources of capital for businesses in their communities, so how institutions assess CRE credits matters.
Prepare for regulator scrutiny on interest rate risk & liquidity Banks and credit unions that aren't paying attention to these critical issues can expect a tough review. With the uncertain economic outlook, regulators and examiners have been regularly conveying their top priorities for banks and credit unions.
Find commercial real estate risks in the loan portfolio Sound riskmanagement practices in commercial real estate lending help lenders manage CRE credit losses and protect the portfolio's profitability. You might also like this podcast, "How to sleep easier at night about your capital and risk levels."
Connect with an expert Common fraud schemes Check fraud Check fraud is one of the most concerning fraud trends for community banks in 2025. Regardless of the current budget, regulators will expect adequate technological and human resources to protect the institution's safety and soundness. Staying on top of fraud is a full-time job.
In September, the Office of the Comptroller of the Currency (OCC) published final guidelines designed to “strengthen the governance and riskmanagement practices of large financial institutions.” While the final guidance clearly applies to larger financial institutions, community banks should still take note.
This article is the first in a two-part series on top concerns and growth strategies of community banks. Riskmanagement. These are all phrases that resonate with community bankers. Community bankers are not keeping these concerns to themselves. ManagingRisk. Risk analysis. Risk assessment.
For most consumers who have a checking account, savings account and maybe a mortgage, the regulations placed on their community bank isn’t given a second thought. Two recent surveys addressing the community banking landscape have pointed to increasing regulations as the primary cause of stress for these institutions.
Meeting investment accounting and reporting requirements The right technology tools can help institutions manage investment accounting compliance and risk exposure across various investment types. Investment accounting compliance not only minimizes operational risks but also reduces regulatory scrutiny.
Community banks (under $10B in assets) serve a key role for borrowers, local communities, and the broader US economy. Community banks are better positioned than many other creditors to follow and adapt to local economies, industries and trends, thereby, being better stewards of capital.
Navigating interest rate management in today's environment As regulators focus on interest rate riskmanagement, read about what financial institutions can do to be ready for a rate drop. You might also like this on-demand webinar, "Navigating uncertain times: Strategies for effective riskmanagement and compliance."
Documentation and support: Regulators expect transparency in the CECL Q factor process. Looking forward CECL Q factor considerations for community financial institutions For smaller financial institutions, managing Q factors can be especially challenging due to limited resources or less complex risk profiles.
In a recent Sageworks webinar Robert Ashbaugh, senior riskmanagement consultant at Sageworks, discusses High Volatility Commercial Real Estate (HVCRE) lending best practices. Ashbaugh’s presentation begins with a quick summary of why regulators care about HVCRE. How did we get here? What are HVCRE loans?
With consumer expectations seeming to evolve faster every year, community banks could consider partnering with a fintech to keep up with technological innovation. Swashbuckling, nimble, well-funded and unapologetically entrepreneurial, fintechs are offering innovations that allow community bankers to dream big in a host of ways.
But how can this growth be managed appropriately? Community banks certainly want to remain conservative with risks and follow regulations. CEIS Review , a New York-based bank consulting firm, highlights the shift in a recent article.
In recent months, the momentum around reducing the regulatory burden on the nation’s community banks has continued to gain steam. There are more than 6,000 banks and thrifts under $10 billion in assets and they are often less equipped to deal with complexities brought by additional regulations.
Some of the most pressing challenges facing community banks and credit unions in the current banking environment include narrow interest rate margins, increasing pressure from regulators, and competition with “too-big-to-fail” mega-banks.
Top banking riskmanagement papers and infographics Abrigo experts' insights on deposit pricing, stress testing, loan review, and CECL were popular with banking risk professionals. You might also like this webinar, "Unraveling risk rating: Making sense of your best early warning tool." Here are the top resources.
Many communities of people with disabilities are very close-knit and if your site is recognized as accessible, this ends up being a competitive advantage. It helps in other crucial areas of your organization, such as search engine optimization (SEO) and legal riskmanagement.
download NOW Takeaway 1 The most popular blog posts on the Abrigo site reflect many of the priorities community banks and credit unions had in 2023. Takeaway 2 The top lending and credit blog posts focused on the benefits of banking technology, interest rate management, and developing risk ratings.
Wells Fargo, weeks after it was hit with a rare enforcement action from the Federal Reserve, is overhauling its riskmanagement processes and announced internally that four top riskmanagement executives would be retiring. All are retiring in April, May or June.
During a Sageworks webinar on HVCRE riskmanagement Rob Ashbaugh, senior riskmanagement consultant at Sageworks, explained that clarifications on some of the murkier aspects of the HVCRE (high volatility commercial real estate) rule were anticipated by the industry.
Takeaway 3 Updates on interest rate forecasting and best practices for managing CRE risk were among the most-read blogs. Abrigo's most popular riskmanagement blogs over the last 12 months cover topics that continue to catch the attention of professionals and regulators.
Key Takeaways With more customers leveraging channels like online and mobile banking, community financial institutions are trying to solve how to maintain their hallmark community focus in an increasingly digital world. A relationship-based, community focus in a digital world. learn more.
Anticipating what’s new for your community bank’s next field examination. This is particularly true for community banks preparing to undergo their next regulatory safety and soundness or compliance examination. The better prepared, the less likely they are to run afoul of the continually shifting regulations. By Karen Hoffman.
In a recent whitepaper (download), the regulator outlined the general approach it will take as it evaluates innovative products, services and processes that OCC-regulated banks may offer or perform. Specifically, he said this means: • The bank understands the product and the risks it carries. • Collaborate with other regulators.
Community banks have a choice about addressing the problem: Remain vulnerable or be vigilant. Fraud and cybercrimes continue to increase, causing challenges for community banks. But there’s plenty community banks can do to meet this challenge. Fraud and cyber attacks are on the rise, and at great expense to the industry.
This blog was co-authored by Perficient Risk and Regulatory CoE Member: Alicia Lawrence Perficient’s Risk and Regulatory Center of Excellence (CoE) remains at the forefront of evolving financial rules and regulations, ensuring readiness to tackle emerging challenges and safeguard financial institutions and its customers.
Thankfully for bank and credit union executives, lenders, riskmanagers, and Bank Secrecy Act (BSA) Officers, banking podcasts and podcasts for credit unions are plentiful, and options are growing. Other podcasts might be internationally based and of little interest to community financial institutions or credit unions based in the U.S.
Takeaway 2 Examiners' focus is on riskmanagement related to products and services , especially those involving complex technologies like AI. First, they must evaluate whether their institution is prepared to insert AML riskmanagement procedures into the transaction process to match the speed FedNow can offer.
This blog was co-authored by Perficient Risk and Regulatory CoE Member: Alicia Lawrence The announcement of significant amendments to the New York State Department of Financial Services (NYSDFS) regulations on December 1, 2023, represents a pivotal moment for entities operating within New York’s financial sector.
Independent Banker ’s annual Community Bank CEO Outlook survey reveals how community bank leaders plan to leverage today’s deposit-laden banking environment to grow this year. Janet Silveria, Community Bank of Santa Maria. So, what’s at the top of community bank leaders’ to-do lists? What changes will 2022 bring?
According to CB Insight , community bankers felt Q3 was a light one in terms of regulatory compliance. As a result, banks are having to spend more time and resources on complying with regulations instead of profitable activities such as booking new loans. However, community banks are well equipped to solve this issue.
In a recent Forbes article, Frank Sorrentino, Chairman and CEO of ConnectOne Bank, offered his take on how financial institutions should flip their mindset on regulators and examinations. Stress testing is one such area where many smaller banks are feeling the weight of regulation.
While federal regulators only require this small number of banks to be subject to these particular stress tests, as outlined in the Dodd-Frank Act following the economic crisis of 2008, stress testing is becoming a critical part of financial institutions’ riskmanagement strategies, regardless of their asset sizes.
Stress Testing | 7 minute read Key Takeaways Stress testing is an important component of sound riskmanagement. Some financial institutions may view stress testing as a “check the box” practice to satisfy regulators, but others are making the most out of the process. Stress testing and riskmanagement.
Directors overseeing a bank’s operations are important partners in supervisory efforts, the FDIC noted in the article (“A Community Bank Director’s Guide to Corporate Governance: 21st Century Reflections on the FDIC Pocket Guide for Directors.”). Riskmanagement culture What exactly is a riskmanagement culture?
The FHLB system reform is precipitated primarily by its regulator, the Federal Housing Finance Agency (FHFA), which is performing a deep dive into all aspects of the FHLB in the wake of some disturbing actions , specifically with four of the five failed banks just weeks or days before failure.
The Stress Test Scenarios for Big Banks Are Useful for Smaller Institutions' Own Tests Banking regulators recently released the 2022 scenarios for upcoming stress tests by the biggest banks. Prudent stress testing as a riskmanagement tool helps the enterprise see where the potential pitfalls are in their plans.
An inverted yield curve, continued bank failures, and the desire to managerisk 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.
An inverted yield curve, continued bank failures, and the desire to managerisk 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.
In a survey of community banks and credit unions at the 2016 Sageworks RiskManagement Summit, 42 percent of respondents said Commercial Real Estate, or CRE, lending was their primary focus for loan portfolio growth. Learn more about the Sageworks Credit RiskManagement Solution.
Measuring Interest Rate Risk Can Vary by Institution Interest rate risk measurement plays a key role in ensuring an institution's safety and soundness. Would you like other articles on asset/liability management in your inbox? FDIC) noted in its 2021 Risk Review.
As community FIs, regulators force us to throw enough money down a black hole without us volunteering to do so. But managingrisk across organizational silos is highly fragmented in FIs. banks credit unions enterprise wide riskmanagement erm Kafafian marsico mcgladrey thrifts' It''s not worth the money.
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