During our recent COVID-19 stress testing webinar, I discussed how one of the primary goals of stress testing is to rank your loans based on their capital at risk as measured by the stress test. Community banks can then use these...
Projecting Interest Income Needs New Approach in Pandemic Economy
COVID-19 may be as contagious economically as it is medically. Community banks, whose lifeblood is interest income, have significant exposure to companies that have been hit particularly hard. They face the question of how to...
Bankers Should Focus on Five Loan Characteristics to Assess Risk from COVID-19 Economy
Many community banks have been in touch with their borrowers to assess their financial condition during this precarious economic environment. Bankers are also segmenting their portfolios based on some of the most affected...
The Hidden “Surcharge” Embedded in the CBLR
The Federal Reserve approved a simplification of the capital rules for the large banks on March 4, which coincided with the beginnings of the collapse in financial markets due to COVID-19. So, what does this have to do with...
Should Community Banks Consider the CBLR at 8 Percent?
Under the CARES Act signed into law by President Trump last month, the Community Bank Leverage Ratio CBLR) threshold temporarily drops from 9 percent to 8 percent until the earlier of December 31, 2020 or the date on which the...
Community Banks Need Stress Testing Now More than Ever: Invictus Webinar
Stress testing is an essential tool for community banks that want to navigate the COVID-19 economy safely and position their banks for opportunities down the road, Invictus CEO Adam Mustafa said on an April 15 webinar attended by...
COVID-19 and Your ALLL: Now What?
Community banks can no longer estimate their loan loss reserves the way they did before the coronavirus upended the global economy. But there’s a solution, as this article explains.
ZIRP, NIRP and QE(n) – Here we go again*
The unprecedented economic implications of the coronavirus has led the Federal Reserve to embark on a path that even just a few short years ago would have been completely unimaginable. The moves include a drastic cut in interest...
Free On-Demand Webinar: Why Community Banks Need Stress Testing Now More than Ever
Invictus Group CEO Adam Mustafa presented a complimentary webinar at 1 p.m. EST on Wednesday, April 15 explaining Why Community Bank CEOs Need Stress Testing Now More than Ever. This one-hour webinar will show you how to plan for...