Making Sure Stress Tests are Part of the Bank’s Overall Risk Discussions
September 06, 2010
There’s no doubt that examiners want your bank to include stress testing as part of a comprehensive risk management program. Twice this year, regulators reminded banks that they should use stress tests to gauge interest rate risk and funding and liquidity risk.
“The funny thing...
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Indexed by: Market Risk
Court Ruling, Fine Print Helps Insurers Block D&O Coverage
September 06, 2010
Banks have begun to encounter language in their D&O liability insurance policies that is making the policies much harder to enforce. And one of the methods used by carriers - requiring a separately signed warranty letter at the time of policy placement – has withstood a Circuit Court...
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Indexed by: Legal
IRS Targets How Banks Are Treating Non-Performing Loans; Accrual Interest, Deductions at Issue
August 30, 2010
The IRS has created special teams to scrutinize bank income tax returns, questioning bad debt deductions and making sure that accrual interest on non-performing loans is treated properly, according to IRS Non-Performing Loans Directive #1. The rub: While bank regulators require banks to stop...
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Indexed by: Accounting | Asset Quality | Legal
Got Excess Capital? The Pluses and Minuses of Buying Back Your Bank Stock
August 30, 2010
Tread carefully if you're considering buying back your bank stock. Although stock prices are still lower than they were several years ago, bank regulators are demanding more capital than ever before. Still, some say it's a "once-in-a-generation opportunity."
"You have to be comfortable with your...
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Indexed by: Capital Adequacy | Management
Jump Start Your Enterprise Risk Management Program With Proven Categories
August 30, 2010
You’re about to embark on an enterprise risk management program. One way to jump start your plan is to follow some or all of the nine risk categories that the OCC uses when examining large banks.
The OCC launched its “supervision by risk program” in 1996 with some fanfare, urging...
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Indexed by: Liquidity | Management | Market Risk
Regulators Ordering Banks to Plan for Liquidation in Consent Orders
August 23, 2010
Federal regulators are increasingly inserting language into consent orders –instead of waiting to issue a Prompt Corrective Action– that requires adequately-capitalized banks to come up with immediate plans to merge, sell or liquidate their institutions, a Bank Safety and Soundness...
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Indexed by: Capital Adequacy | Enforcement/Exams | Regulation | Troubled Banks
A Guide to Enterprise Risk Management, From the Banker’s Perspective
August 23, 2010
Examiners are often demanding that banks establish enterprise risk management programs. But the task can seem daunting. How do you start? When do you end? How do you get your board to support it?
Bank Safety & Soundness Advisor set out to answer these questions by interviewing bankers across...
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Indexed by: Management | Market Risk
10 Proven Ways to Reduce Your Bank’s D&O Exposure
August 23, 2010
There’s some good news in the D&O insurance world. Pricing decreased 15.7% in Q1 2010 compared to Q1 2009, according to Aon Risk Services Financial Services Group’s quarterly pricing index.
But you’ll still need to scour your policies carefully and negotiate hard to get the...
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Indexed by: Litigation | Management
