Resources
Credit Risk: The Third Leg of Risk in 2023
Posted in Asset Liability Management, Credit Risk, Insights, Liquidity Risk
Haverford, PA, March 23, 2023 The recent failures of Silicon Valley Bank (SVB) and Signature Bank shined the spotlight on the realities of interest rate risk and liquidity risk. Unrealized losses became relevant when coupled with a period of exacerbated liquidity risk. Simulations of reduced equity became a reality. Yet another risk to keep a …
Liquidity, From Feast to Famine
Posted in Insights, Liquidity Risk
Haverford, PA, March 15, 2023 Over the past several years financial institutions have been flush with liquidity while interest rates were at historic lows. The liquidity feast was perpetuated by the massive fiscal stimulus, the PPP loan program and the lack of consumer and business spending. Throughout the first 18 months of the pandemic the …
Post-Pandemic Considerations, A VBC Series:
Potential Challenges Faced by Financial Institutions
Posted in Covid-19, Insights, Liquidity Risk, Product Analytics, VBC Advisors
Haverford, PA, October 12, 2022 Deposit funding loss finally arrived During the covid era, the additional stimulus liquidity flowing into depository institutions (and curtailed social entertainment spending by depositors) meant that reasonable margins remained despite low earning asset yields. Now, after five rounds of policy rate hikes to stem inflationary concerns (with even more expected …
Managing Liquidity Risk at Community Financial Institutions: The Liquidity Coverage Ratio
Posted in Asset Liability Management, Insights, Liquidity Risk
In Challenging Times, Liquidity is Critical. Back in February 2020, no one would have predicted that the entire world would ban international travel; close restaurants, hotels, churches and factories; and pull children from schools. We have all adjusted to this post-Covid-19 world, and we are hoping for a cure. Our economy is resilient because our …
COVID-19 and Bank Liquidity
Posted in Covid-19, Insights, Liquidity Risk
Our own Brian Velligan was a guest on The Kafafian Group, Inc. on their most recent podcast, discussing COVID-19 and its impact on bank liquidity.
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