Sageworks Blog

Apr 16, 2013 07:53

Regulatory guidance notes that an institution can use a variety of methods of stress testing to evaluate the loan portfolio risk and to measure the potential impact on earnings and capital based on its own specific risk profile. Four methods of stress testing include transaction, portfolio, enterprise-level and reverse stress testing. [More]

Apr15

Disclosure Reports: Key items to produce Billy Burnet [email]

Apr 15, 2013 17:30

In July 2010, the Financial Accounting Standards Board (FASB) released a significant update, Accounting Standards Update 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.” This update called for swift change surrounding disclosure requirements involving the credit quality of financing receivables and the allowance for credit losses. An excerpt from the whitepaper, 6 Key Items to Know About Disclosure Reports, is included in this post to describe what key data and reports must be produced as a result of this update. [More]

Apr14

Benchmark your business & win the horse race Libby Bierman [email] Analyst

Apr 14, 2013 17:35

Maybe it’s an inherent competitiveness or just the pursuit of improvement, but it’s commonplace for people to seek out benchmarks they can use to assess their relative position or performance. It interests people to know how they compare to their peers. Benchmarks have a place in business, too, and can be an invaluable instrument to help business owners succeed. Compare running a business to running in a horse race. [More]

Apr 13, 2013 16:21

For many banks, stress testing is a best practice and something they should be progressively implementing in a structured manner, Mike Lubansky, Sageworks' director of consulting said. That way, they can make the most out of the process. [More]

Apr12

New call report Schedule RI-C due April 30 Mary Ellen Biery [email] Research Specialist

Apr 12, 2013 09:06

Financial institutions with at least $1 billion in assets must include a new report with their quarterly call reports due to the FDIC on April 30. Learn more about new disclosure reports and how banks are addressing challenges related to them. [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]

Apr10

Adding more value to the role of Chief Audit Executive Jessica Ballard [email] Director of Marketing

Apr 10, 2013 17:13

Chief audit executives (CAEs) face countless challenges with the various regulations they must meet and with ensuring that investors have faith in the company’s numbers.

Many CAEs have focused most, if not all, of their time on regulatory compliance. That focus is now shifting over to value-added services intended to help improve processes and strategies, according to a recent article on AccountingWEB. Internal auditors have a wealth of knowledge about their organization, but struggle with the perception that their part in the company is for compliance-related reasons only and are not seen as leader to point out strategic risks. This is only one of many challenges they’re finding themselves up against. [More]

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]