Sageworks Blog

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]

Mar18

Basel III Capital Rules: Delay is a victory for community banks Billy Burnet [email]

Mar 18, 2013 10:05

The new proposed capital and liquidity requirements from Basel III pose a major threat to the survival and profitability of community banks, according to Edgar Ortiz, President and CEO of Strategic Analytic Solutions LLC. In part 1 of this guest column, Ortiz provides insight into how the delay of the Basel III rules was a victory for community banks across the country. [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]

Dec31

5 Banking issues to watch in 2013 Mary Ellen Biery [email] Research Specialist

Dec 31, 2012 12:36

Community banks in the U.S. have several issues of great importance to track in the coming year, and SNL Financial’s Community Corner blog recently outlined what’s at stake. [More]

Nov 26, 2012 13:48

Basel III can be a touchy subject for community banks and rightfully so given the new requirements with which they’d have to comply if Basel III is implemented for these banks. [More]

Jun 26, 2012 10:04

A Sageworks roundup of recent banking industry news: Basel III impact; Regional lenders gain ground; Supervisory agencies coordinate; The decline of independent community banks. [More]