Sageworks Blog

Jun15

Regulatory changes: Top of mind for bankers Mary Ellen Biery [email] Research Specialist

Jun 15, 2013 07:07

Spending a lot of time at your financial institution on regulatory issues? You’re not alone. A recent survey of bank executives by KPMG LLP found that regulatory issues are top of mind for many in the industry. Thirty-five percent of respondents expect bank management to spend most of its time and energy in the coming year on initiatives related to navigating big changes in the regulatory environment. [More]

May24

What does recent guidance recommend for stress testing? Libby Bierman [email] Analyst

May 24, 2013 15:29

Before the recent wave of guidance, there had been a lot of frustration with stress testing because there had been little direction as far as what “stress testing” actually meant and what a bank should do. [More]

May17

Sageworks Bank & Credit Union Examination Survey goes live Jackie Peluso [email] VP of Media Relations

May 17, 2013 16:50

Sageworks made available its new Bank & Credit Union Examination Survey to clients and other financial institutions this morning. The anonymous, 8-question survey aims to collect data on the federal safety and soundness exam experience of banks and credit unions within the last 12 months. At the conclusion of the survey, the survey data will be anonymously aggregated and disseminated in a comprehensive report to help peer institutions prepare for their next OCC, FDIC, NCUA or Federal Reserve exams. [More]

Apr11

Are regional banks the right size? Sanaa Bhambri [email] Marketing Analyst

Apr 11, 2013 08:00

With the increasing regulatory requirements and challenges surrounding financial institutions, many regional banks are not just surviving, but thriving, according to a recent article by American Banker. [More]

Jan23

4 "Risky" questions to ask about risk-weighting methodology Sageworks [email]

Jan 23, 2013 09:14

While there may be revisions to the new risk-weighting proposal, it's evident that regulatory agencies will be soon making a change to how banks measure risk, particularly risk in the portfolio.

To prepare, financial institutions should ask the following questions: [More]

Jan22

Proposed changes to risk-weighting methodology Libby Bierman [email] Analyst

Jan 22, 2013 09:34

The current methodology to determine risk-weighted assets is somewhat simple. Presently, banks’ risk-weighting calculation categorizes assets into four risk-weighting categories: 0 percent, 20 percent, 50 percent, and 100 percent. A commercial loan, for example, is weighted at 100 percent. This weighting does not account for collateral, cash flow or character. Moreover, it does not account for the complexities that have surfaced over the past several years with cross-collateralization and multiple guarantors. Consequently, setting a regulatory capital requirement based on the existing risk-weighting calculation does not truly measure the different risk within each financial institution. [More]

Jan21

Risk-weighted assets, regulators' stiff proposal Libby Bierman [email] Analyst

Jan 21, 2013 16:41

Despite regulatory delays, it's likely that banks will be required to report appropriately how their institutions’ risk correlates with their given capital. It's critical that banks begin to plan for changes to capital requirements, and a good place to begin planning is with the institutions’ methodology for risk-weighting. [More]

Jan07

FASB proposes major revisions to accounting for credit losses Libby Bierman [email] Analyst

Jan 07, 2013 15:15

For the past few years, the Financial Accounting Standards Board (FASB) has been discussing the adoption of the “expected loss model” for the Allowance for Loan and Lease Losses (ALLL). On December 20, 2012, FASB issued a Proposed Accounting Standards Update that finally defines the actual accounting framework and clearly differentiates this proposal from the current accounting standard. The proposal calls for an entity to recognize an allowance for credit losses based on supportable forecasts of contractual cash flows not expected to be collected. [More]

Nov30

Sageworks to host allowance for loan and lease losses forum Sageworks [email]

Nov 30, 2012 08:17

On December 3rd and 4th, Sageworks will host an ALLL Forum and Surety Conference for banking associates and industry experts. The forum will feature in-depth discussion regarding allowance for loan and lease losses (ALLL) calculations, Q&A with ALLL experts, best practices for managing the reserve, recent enhancements to Sageworks’ ALLL solution, and an opportunity to network with peers. [More]

Nov28

Will banks see extension of FDIC guarantee? Sageworks [email]

Nov 28, 2012 16:26

The U.S. Senate could take up legislation to extend the FDIC’s Transaction Account Guarantee program for two years. The Wall Street Journal reports Sen. Harry Reid has introduced a bill to continue a program that has provided unlimited guarantees for non-interest bearing transaction accounts such as payroll. [More]