TOPIC: Capital

WEBINAR: A Look at Stress Testing with COVID-19: What's at Risk?

Economic uncertainty is raising the same two questions across many institutions: What loans are at risk? Do you have enough capital? Join us on Wednesday, July 29th at 9 a.m. PT, for a webinar as we review two stress testing approaches that allow you to address these questions. Register Today!

    Requirements when at $3Billion and $5Billion in Assets

    SVP at a bank ($2.9BUSA)
    i am looking to see if anyone can point me in a direction where it will tell me any additional requirements we will have to follow when over $3Billion and then over $5Billion. this would be more for safety & soundness and independence requirements. it is not for compliance requirements. maybe there is some type of grid or something out there??

    we are and FDIC public bank with a holding company

    i am aware of FDIC Part 363 but that is all i can seem to find and this is not my forte..

    thanks!

      Is it Too Late to Automate? How to Get Started with PPP Lending | Blog

      A fifth of the Paycheck Protection Program’s $349 billion in loans are already committed, less than five days after launching, but many small businesses are expressing frustration that their financial institution doesn't offer PPP loans. It's not too late to automate your lending process to get capital in the hands of small businesses quickly. Download our latest blog to learn how to get started with automation so you can be on your way to executing PPP loans and helping your community.

      For more information on the CARES Act and the Paycheck Protection Program, visit our resource page. 

        Barclays' Outlook on Coronavirus Impact - Trade, Economy, Banking System Resilience, etc.

        Hi CBANC community! I wanted to share some market insight we received from our banking partner, Barclays. Just one opinion and obviously there's still a lot left to unfold but figured I'd share! Doc attached for download as well. 

        Brief summary of the Barclays coronavirus client call on Friday:

        Macroeconomic
        • Significant reduction in global growth prospects for H1 expected, with impact greatest in particularly vulnerable regions (China, Japan, South Korea, Europe)
        • Most impacted parts of the economy include the travel sector, commodities (particularly oil) and SMEs
        • Ongoing uncertainty about outlook beyond H1, driven largely by uncertain public health forecast and effectiveness of virus containment and economic measures
        • Coordination of monetary and fiscal policy to respond to the crisis is not only encouraged, but also expected (i.e. “baked into” market expectations) – as a result, expect little impact when it does occur but significant adverse impact when it doesn’t (see market response to ECB not reducing rates last week)
        Banking system resilience
        • Banking system is more resilient to respond to a credit crunch due to reforms on bank capital and liquidity requirements put in place in response to the Global Financial Crisis
        • As a result, risk of systemic failure emanating from the financial system have reduced (but not disappeared)
        • Trading floors globally have not been stress tested to a scenario where everyone has to work from home to date; however, in Asia there have been contingency measures in place for the past 4-6 weeks requiring staff to work from multiple locations, with little to no impact on functioning of global capital markets 
        Capital markets
        • Turbulent forecast even prior to coronavirus, due to unstable US/China trade outlook and Brexit
        • In moments of market uncertainty, there is typically a shift towards “save haven” assets (e.g. USD, JPY, gold). However, what we have seen over the past 1-2 weeks is a flight to liquidity (even gold price declined) as institutional investors engage in broad liquidation of their positions in an attempt to manage risk
        • In FX markets:
          • Volatility is back both among G10 and especially emerging markets currencies
          • Emerging markets liquidity has deteriorated over the past 1-2 weeks, trades executed at wider spreads
          • G10 liquidity has been more stable with lower impact on spreads (impact particularly felt on forwards)
        • Last week capped the most turbulent stretch since 2008

        Trade
        • Barclays do not currently see any extraordinary requests about additional working capital – utilisation levels in line with expectations
        • Feedback from corporate clients as follows: (i) lower stock and inventory levels, (ii) lower orders and production levels, (iii) cutbacks in production days, (iv) difficulty in finding additional suppliers to reduce their concentration risk
        • Sporadic but patchy reports that Chinese production is starting to come back to normal; however, these improvements likely to be offset by disturbances to both demand and supply in Western economies that are undergoing lockdowns
        • As this becomes a demand problem, quality of debtors becomes important – likely to result in working capital issues

          Free Webinar | CECL and Your ALM Model

          Wednesday, October 9 | 3 p.m. EST/ 2 p.m. CST
          Presenter: Rob Newberry

          Register here

          As we get closer to implementation of CECL, we want as much information as we can get to help in understanding everything that should be considered in putting together our CECL models.
          CECL is best thought of as part of a holistic view that focuses on Enterprise Risk Management and not just credit risk alone. It is no longer advisable to operate in silos as you might have done in the past when credit loss reserves were calculated by the Credit Officer for the institution, while Asset/Liability forecasts were in the domain of the CFO. With the need to look at a more forecasted approach to determine credit reserves, it makes sense to leverage some of the assumptions that have been used in the past for developing loan assumptions in your A/L models.

          Join this free webinar to learn:
          • How CECL will impact ALM 
          • Effective capital planning and loan pricing processes
          • What the changing regulatory landscape is like
          Save your seat!