Sageworks Blog

Apr09

Traditional methods for predicting default Billy Burnet [email]

Apr 09, 2013 10:51

Exposure to credit risk is widely recognized as the leading source of problems in financial institutions, and much regulatory and industry attention has focused on how credit risk contributed to the financial crisis and how investors, customers and taxpayers can be protected against future losses. Credit risk models like a probability of default or loss-given default are increasingly relied upon to make significant lending and capital-requirement decisions. Four of the most common methods for assessing the probability of default are explained in this post. [More]

Apr 08, 2013 07:35

Financial institutions make tough lending choices that can help determine which clients get the funding they need to succeed—they act as an important arbiter. At the same time, financial institutions of all sizes are facing an increased push by federal regulators to go beyond historical risk-management efforts. Here is a rundown of some of the regulations you should know. [More]

Apr06

Bank-card delinquencies fall in 4Q Mary Ellen Biery [email] Research Specialist

Apr 06, 2013 08:25

Bank-issued credit-card delinquencies fell to an 18-year low in the fourth quarter, the American Bankers Association reported this week. Credit-card financing accounts for a small but important portion of small-business capital, according to the U.S. Small Business Administration. [More]

Apr05

Three quarter-end ALLL challenges Sanaa Bhambri [email] Marketing Analyst

Apr 05, 2013 09:12

It is quarter end and most financial institutions will be neck deep in the reserve calculations process. Would you like to spend half the time on your ALLL calculations? Watch the video below, to learn how.

Apr04

Disclosure Reports: Why the FASB changes? Billy Burnet [email]

Apr 04, 2013 14:40

Sageworks recently hosted a webinar, “ALLL” About Disclosure Reports: Key Issues to Know, featuring Ancin Cooley, principal of Synergy Bank Consulting and Ed Bayer, senior risk management consultant at Sageworks. The webinar discussed FASB Accounting Standards Update (ASU) 2010-20 and the challenges that financial institutions face as a result. This post contains portions of the webinar and associated whitepaper that describe why the update was issued. [More]

Apr 03, 2013 07:57

Last fall, U.S. community banks received much-needed regulatory clarity on how to stress test their portfolios or examine the stability and soundness of their loan portfolios in tougher times.

This was good news for management at these banks as their biggest hurdle had been the lack of transparency from regulators on what was expected of these community banks for sensitivity analyses. [More]

Apr02

Goal of historical loss rates: FAS 5 loan pools Sanaa Bhambri [email] Marketing Analyst

Apr 02, 2013 07:59

Sageworks' risk management consultant explains the goal of historical loss rates within the FAS 5 loan pools in the video below.

Apr01

Small-business loan growth, market-share trends Mary Ellen Biery [email] Research Specialist

Apr 01, 2013 14:17

Bigger banks held the largest share of small-business lending in 2012, but small-business loan growth at smaller insitutions outpaced the growth at the biggest banks, according to a recent data analysis by SNL Financial. [More]

Mar31

Stress testing's "black box" Libby Bierman [email] Analyst

Mar 31, 2013 15:29

The recent results of the 2013 CCAR and CapPR tests remind bankers, at institutions of all sizes, the regulatory commitment to and the benefits that can come from stress testing and capital planning. While smaller banks may sufficiently benefit from simpler stress testing models than those utilized in Dodd-Frank compliance, forward-looking forecasts aren’t a new practice for financial institutions. [More]

Mar29

Basel III Capital Rules: Undue burden on community banks Billy Burnet [email]

Mar 29, 2013 15:15

In part 1 of this guest column, Edgar Ortiz, President and CEO of Strategic Analytic Solutions LLC, discussed the importance of the U.S. bank regulatory agencies’ delay of the implementation of the new capital rules of the Basel III Accord. In part 2, the potential burdens facing community banks from the proposed rules will be discussed. [More]