Search Results for 'Market Risk'


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... Continued... Indexed by: Market Risk
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... Continued... Indexed by: Liquidity \| Management \| Market Risk
The OCC’s 9 Risk Categories August 30, 2010 Credit Risk: Risk to earnings or capital due to a creditor's failure to meet the terms of any contract with the bank. Credit risk also comes from selecting investment portfolio products, derivatives trading partners, or foreign exchange counterparties. Interest Rate Risk: The risk due... Continued... Indexed by: Management \| Market Risk
ERM Practices and More August 23, 2010 CEO, CRO, CFO, and Board all aligned in benefits of identifying and mitigating risk Mission of Risk Office is communicated up and down the chain List of top risks distributed internally allowing the entire organization to... Continued... Indexed by: Management \| Market Risk
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... Continued... Indexed by: Management \| Market Risk
Financial Reform, Slow Recovery Lead to New Bank Worries July 12, 2010 Financial institution executives are equally concerned about market, accounting and governance risk, thanks largely to uncertainty about the economy and the impact of financial reform, a Bank Safety & Soundness Advisor survey shows. The new worries signal a shift from last year when bank... Continued... Indexed by: Accounting \| Legislation \| Market Risk
Regulators Want Powerful Chief Risk Officers June 21, 2010 Regulators, fearful that banks remain unrealistic about their safety, are emphasizing the need for stricter board oversight and a much greater role for chief risk officers. The issue was highlighted by a group of senior bank regulators that want banks to make quick headway in... Continued... Indexed by: Management \| Market Risk \| Regulation
Banks Fear Concentration Limits Would Unjustifiably Make them Examination Targets May 24, 2010 Examiners will be scrutinizing any funding exposure of 5% or more of an institution’s liabilities and any credit exposure of more than 25% of total risk-based capital, under new regulatory guidelines on correspondent concentration risk. Regulators want banks to calculate gross and net... Continued... Indexed by: Liquidity \| Management \| Market Risk
Regulators Emphasize Interest Rate Risk Concern, Urge Banks to Expand Modeling April 12, 2010 Two senior FDIC officials tell Bank Safety & Soundness Advisor that they are becoming increasingly concerned that banks are not focused sufficiently on interest rate risk or being aggressive enough in their modeling of it. The concern spans all four regulatory agencies, which recently issued a... Continued... Indexed by: Market Risk
Examiners Will Demand Action if Your Interest Rate Risk Process is Weak January 01, 0001 The 2010 interagency policy statement warns that examiners can come after you if your IRR process is weak or your bank’s exposure is too high. Examiners can demand that you: 1. Raise additional capital; 2. Reduce levels of your interest-rate risk exposure; 3. Strengthen IRR management... Continued... Indexed by: Market Risk