July 18, 2023
As central banks continue to struggle with taming the stubborn inflation, there are two plausible near term scenarios for banks, credit unions and other institutions holding interest bearing assets and liabilities...
Apr 14, 2023
In this environment where retail deposits are more valuable and more expensive, the competition for deposits continues to heat up. Banks with liquidity challenges turn to promotional pricing to raise rate-sensitive deposits – a race to the bottom of margins. As banks compete for rate-based deposits, they expose themselves to significant repricing risk.
Feb 14, 2023
Financial institutions are faced with several common challenges. Many of these challenges are preventable or controllable, but often result in a lasting value impact. Profit warning is a key challenge that often results in CEOs losing Board and shareholder confidence and their jobs, ultimately causing devastating harm to their company’s valuation.
July 17, 2023
The uncertainty caused by global macroeconomic headwinds, combined with on-going pressure triggered by the failure of Silicon Valley Bank require lenders to be more cautious and strategic about how they safeguard and grow their balance sheets.
May 16, 2023
FMost banks collect money in the short term and use the resulting funds to make loans in the long term. But managing the ‘tenor mismatch’ between these assets and liabilities can be a challenge for the treasury...
Mar 14, 2023
When interest rates change the present value of assets and liabilities also change exposing the banks to interest rate risk. Changes in interest rates do not have the same impact on the discounted value of assets and liabilities since they are not invested to the same terms.