Integrating Macroeconomic Scenarios in Stress Testing Workflow
This article describes how an advanced testing methodology can protect financial institutions from the risk of unknown shocks by integrating alternative macroeconomic scenarios into their stress testing workflow.
Newsletter: Featured Insights Series - Issue 3 | November 2020
Generally speaking, Canadian credit unions and mid-sized banks are well-capitalized. So, the question really becomes what are the benefits of implementing Economic Capital ECAP system?
Managing Mortgage Prepayments Using Logistic Regression
As rates drop, lenders are likely to see a flurry of requests to switch mortgages. Mortgage redemptions could be expensive from many aspects. For starters, a mortgage repayment can leave a lender with out-of-pocket charges,
Newsletter: Featured Insights Series - Issue 2 | September 2020
As the debt forgiveness period winds down, concerns about what happens in the post-debt holiday period begin to emerge. Most financial institutions, including mortgage insurers, offered a three to six month deferral period to retail and non-retail borrowers. According to BBA’s research, an estimated 20% - 40% of the loan book exposure went on payment holiday as a result of the abrupt stop in economic activity.
Forecasting the Impact of COVID 19 on Credit Portfolios
This article focuses on developing an approach to determine the impact of COVID 19 on credit portfolios.
Newsletter: Featured Insights Series - Issue 1 | July 2020
Much has been written in recent years about the potential for broadening the role of CFOs at financial services organizations, including credit unions. Of special concern has been the extension of the CFO’s traditional finance and comptroller role to include greater involvement in sophisticated strategic planning and external communication, and to foster better cooperation with risk management.
Designing COVID-19 Pandemic Stress Scenario
The profound humanitarian fallout of the COVID-19 carries with it the potential equally disruptive economic fallout. Using scenarios, our experts share their thoughts on what changes would likely stay and what changes are only temporary; and how they would impact the financial services business in medium term.
Pandemic, Climate Change and New Normal
Some actions that banks and credit unions can consider as they seek to stay-in-business business during this time of stress. There’s no doubt that we are only at the start of an unprecedented and uncertain time. Customers need assurances that their local credit union or bank is well-capitalized and is able to assist during this difficult time. Management, meanwhile, needs to take decisive action to deal with the immediate crisis and operate a sustainable business.
Quarterly Stress Testing: Base, Severe, and Adversely Severe macroeconomic scenarios for US and Canadian clients.
BBA - BankingBook Analytics' ScenarioFrontier helps firms to streamline their stress testing activities and establish a collaborative, auditable, repeatable, and transparent stress testing program. Our solution helps firms manage their stress testing submissions promptly and assimilate the process into a broader framework to inform management of decisions and support core risk management, capital planning, budget tracking, and strategic growth objectives.
Canadian Credit Unions Performance - 4th Quarter 2019
Each quarter, we review the public financials of leading Canadian credit unions, diagnosing the state of the credit union industry and illustrating the leading practices and characteristics of industry winners.