Invictus Tariff and Trade War Recession Scenario
The Invictus Tariff and Trade War Recession 2.0 scenario (updated August 19, 2025) is intended to reflect (but not predict) a tail-risk outcome for the U.S. economy, driven by...
The vast majority of community banks would be severely damaged by a community bank leverage ratio requirement of 9 or 10 percent, an Invictus study has found. More than 82 percent of community banks have a strong case their requirement should be 8 percent or lower, while only 4.8 percent of banks require a ratio of more than 9 percent.
How the study was done: Invictus used BankGenome™, its powerful intelligence system, to calculate the optimal capital adequacy for all community banks. The system includes quarterly stress tests on every bank in the country driven by unique algorithms that leverage loan-level data as a proxy for regional lending trends. The BankGenome™ stress tests estimate optimal capital requirements for each bank based upon its unique mix of assets, business models, earnings strength, and asset quality profile.
CECL Trends, CECL, community bank regulations, community banks, CECL Modeling, acl challenges, bank regulatory compliance, advanced cecl
Now that most community banks have eight to ten quarters of CECL experience under their belts, many are still grappling with foundational issues such as overreliance on qualitative factors, lack of responsiveness to risk rating...
capital planning, community bank regulations, Deregulation, bank strategy, community banks, regulatory capital, bank growth strategy, cre risk
Author : Adam Mustafa, CEO, Invictus Analytics
Community banks now have the clearest path in nearly two decades to reshape their regulatory capital requirements—and they shouldn't miss it. While most recent efforts to ease...