The New York Fed (they are on a great roll lately with their research!) just released a really interesting piece called “Economic Capital: A Better Measure of Bank Failure?” ( https://lnkd.in/dCNeSKWf ) and I think it speaks to something many of us in risk management have been talking about for years. The researchers built a solvency metric called Economic Capital (EC) which is basically the present value of a bank’s assets minus the present value of its liabilities and opera

As I’ve mentioned in a few recent posts, even though the Fed has started lowering short rates, the longer end of the curve has remained flat and even ticked up a bit. For example, the 10-year Treasury is up about 10 basis points since the Fed lowered rates.  Despite this, mortgage rates have actually come down significantly, from around 6.9% in late May on a 30-yr fixed rate to around 6.30% in early October. What’s driving that? One big factor has been spread tightening in th

I had the opportunity yesterday (July 2025) to present a webinar to nCino's Portfolio Analytics clients on a topic that continues to be very relevant, and some would say urgent: Know Your Deposits: Avoiding Hidden Risks in Interest Rate and Liquidity Risk Management. Too often, we still rely on static categories like “core” vs. “non-core” or “sticky” vs. “non-sticky”, but those binary labels just don’t hold up in today’s environment. Digital banking, rate-shopping apps, real-

The OCC just released its Spring 2025 Semiannual Risk Perspective and, for community banks, it mostly backed up what we already know. 🏢...

Intricate geometric glass ceiling reflecting the sky, creating a mesmerizing pattern of blue squares. Why Model Integrity and Scenario...