Bank regulators refer to two types of risk from climate change:
Invictus Names Head of Climate Risk Analytics
The Invictus Group has named Avik Ray as director of its new climate risk division.
Invictus Creates New Climate Risk Division
The Invictus Group has created a new climate risk analytical division to help community banks.
Invictus Severe Stagflation Scenario
The Invictus Severe Stagflation scenario tests conditions under the simultaneous occurrence of a severe global recession and aggressive monetary policy that includes rapid and substantial increases in the Fed Funds Rate and...
Need to Raise a Concentration Limit? Here’s How to Do It (Properly)
Early warning systems are great, but sometimes they need to be revisited to preserve their value. This is often the case with lending concentration limits as a percentage of capital at community and mid-sized banks. Your bank may...
WARMing up to SCALE
Many small community banks have yet to make their final decision regarding CECL implementation. Although there are many potential solutions to calculating the ACL, small banks seem to gravitate toward the “Weighted Average...
Where Does Your AOCI Go Next?
We recently published a post by my partner, Adam Mustafa, noting that AFS bond portfolio losses across the industry reached record levels in the first quarter of 2022. While the increases in interest rates are nowhere near (yet)...
News Alert: The Bond Market Wiped out $36 billion of Capital from Community and Mid-Sized Banks in the First Quarter
The bond portfolios of community banks are on fire right now, in a very bad way. With 99 percent of community banks filing their first quarter Call Reports for 2022 as of the date of this article, we now have a sense of how big...
What Community Banks Can Learn from the Fed’s Stress Test Scenarios (or Not)
The Federal Reserve just released the severely adverse economic scenario for the required Comprehensive Capital Analysis and Review (CCAR) stress tests for the largest banks in the country. The annual tests determine each large...