Latest Content

How to Prepare for Climate Risk Management

Bank regulators refer to two types of risk from climate change: The physical risks to property or people from extreme weather or changes in climate. Transitions risks, stemming from extra stress on financial institutions due to climate change-related changes in policy, consumer or business behavior, ...
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Invictus Names Head of Climate Risk Analytics

The Invictus Group has named Avik Ray as director of its new climate risk division. Ray will be responsible for the development of analytics to help community banks navigate expected regulatory requirements for climate risk. His unique background in finance and visual communication has produced ...
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Invictus Creates New Climate Risk Division

The Invictus Group has created a new climate risk analytical division to help community banks. “Our company, which cemented its reputation in stress testing before it became a bank standard, saw the need for this type of community bank analytical product,” said Invictus CEO Adam ...
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Invictus Severe Stagflation Scenario

By Adam Mustafa, Invictus Group CEO The Invictus Severe Stagflation scenario tests conditions under the simultaneous occurrence of a severe global recession and aggressive monetary policy that includes rapid and substantial increases in the Fed Funds Rate and accelerated quantitative tightening in response to persistent ...
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/ Intel, Invictus Blog

The Regulatory Push for Community Bank Climate Change Risk Management

The regulatory pressure on community banks to show they understand how climate change will affect their banks is only going to increase in the years ahead. Although regulators are focusing first on the largest, systemically important banks, they have made it clear that the issue ...
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/ Intel, White Papers

Need to Raise a Concentration Limit? Here’s How to Do It (Properly)

By Adam Mustafa, Invictus Group CEO Early warning systems are great, but sometimes they need to be revisited to preserve their value. This is often the case with lending concentration limits as a percentage of capital at community and mid-sized banks. Your bank may be ...
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/ Intel, Invictus Blog

WARMing up to SCALE 

Many small community banks have yet to make their final decision regarding CECL implementation. Although there are many potential solutions to calculating the ACL, small banks seem to gravitate toward the “Weighted Average Remaining Maturity” (WARM) or “Scaled CECL Allowance for Losses Estimator” (SCALE) methods ...
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/ Intel, Invictus Blog

Where Does Your AOCI Go Next?

By Leonard J. DeRoma, Invictus CFO We recently published a post by my partner, Adam Mustafa, noting that AFS bond portfolio losses across the industry reached record levels in the first quarter of 2022. While the increases in interest rates are nowhere near (yet) what ...
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/ Intel, Invictus Blog

News Alert: The Bond Market Wiped out $36 billion of Capital from Community and Mid-Sized Banks in the First Quarter

By Adam Mustafa, Invictus Group CEO The bond portfolios of community banks are on fire right now, in a very bad way.  With 99 percent of community banks filing their first quarter Call Reports for 2022 as of the date of this article, we now ...
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/ Intel, Invictus Blog

What Community Banks Can Learn from the Fed’s Stress Test Scenarios (or Not)

By Adam Mustafa, Invictus Group CEO The Federal Reserve just released the severely adverse economic scenario for the required Comprehensive Capital Analysis and Review (CCAR) stress tests for the largest banks in the country. The annual tests determine each large bank’s minimum capital requirement, so ...
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/ Intel, Invictus Blog