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Bank Directors Expected to Know Bank’s Risk Appetite, Challenge Management

Bank Directors Expected to Know Bank’s Risk Appetite, Challenge Management Community banks should read carefully the OCC’s latest proposal to hold directors at large banks more accountable for risk management. While the proposed rule is aimed at banks with assets of $50 billion or more, ...
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/ Archive, Article, Intel, March 2014

How Stress Testing Is Helping A Troubled Bank Look To The Future

How Stress Testing Is Helping A Troubled Bank Look To The Future A Client’s Perspective When MBank CEO Jef Baker took over the troubled bank in 2011, there was a 95 percent chance that the Oregon-based bank would fail. But Baker isn’t your ordinary turnaround ...
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/ Archive, Article, Intel, March 2014

How the Proposed Liquidity Rule for Large Banks Could Trickle Down  to Community Banks

How the Proposed Liquidity Rule for Large Banks Could Trickle Down  to Community Banks By Leonard J. DeRoma The proposed liquidity coverage ratio risk measurements do not apply to community banks.  Yet a careful reading of the proposed rulemaking suggests that there are unintended consequences ...
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/ Archive, Article, Intel, March 2014

Ways to Use the Invictus Acquisition Gauge

Ways to Use the Invictus Acquisition Gauge Identify targets that are truly accretive to earnings. Early-stage assessment of potential targets or merger partners. Filter data by geography, asset size and other criteria to produce short list of targets. Look for banks with a higher Invictus ...
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/ Archive, Article, February 2014, Intel

Risk Assets and Loan Vintages Emerge as Key M&A Analytics

Risk Assets and Loan Vintages Emerge as Key M&A Analytics Bank acquisitions that ignore the regulatory capital requirements of their targets and instead focus solely on earnings and market or book value can be considerably flawed. This analytical error is amplified by the fact that ...
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/ Archive, Article, February 2014, Intel

Read Between the Lines February 2014

Read Between the Lines Each month Bank Insights reviews news from regulators and others to give perspective on regulatory challenges. OCC Reveals Enforcement Statistics The Office of the Comptroller of the Currency’s 2013 Annual Report always offers a few telling nuggets.  In fiscal year 2013, ...
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/ Archive, Article, February 2014, Intel

Read Between the Lines January 2014

Read Between the Lines Each month Bank Insights reviews news from regulators to give perspective on regulatory challenges. OCC to Target Strategic and Capital Planning Processes As we’ve said before, the OCC and other regulators are zeroing in on the adequacy of strategic and capital ...
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/ Archive, Article, Intel, January 2014

Rising Interest Rates: Not Just a Liability-Side Risk

Rising Interest Rates: Not Just a Liability-Side Risk By Leonard DeRoma While the timing and magnitude may be uncertain, one thing we know for sure is that interest rates will rise.  If history and market tendencies are any indication, the yield curve (the difference between ...
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/ Archive, Article, Intel, January 2014

How To Manage IRR In A Changing Economic Environment

THE CEO CORNER: How To Manage IRR In A Changing Economic Environment It is clear that coming out of the worst economic environment since the Great Depression, community banks face a challenging credit and earnings cycle. That is why many bank executives and boards of ...
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/ Archive, Article, Intel, January 2014

Expect Interest Rate Risk Management Scrutiny from Examiners in 2014

Expect Interest Rate Risk Management Scrutiny from Examiners in 2014 Bank examiners will assess how community banks manage interest rate risk (IRR) exposures in 2014. They want to know if a bank’s interest rate risk measurement process is adequate based on its risk profile and ...
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/ Archive, Article, Intel, January 2014