Banks view digitalizing credit-risk function as urgent but face people challenges
Customer experience focuses are heading beyond call centers, chatbots and mobile banking to include prioritizing credit-risk infrastructures.
Browsing: Credit risk
OCC: Trading revenue declines in fourth quarter
Commercial banks reported total trading revenue of $9.6 billion in the fourth quarter of 2022, down 24.5% from the previous quarter and up 33.9% compared with the year before, according to the OCC’s Quarterly Report on Bank Trading and Derivatives Activities released on Friday.
Report: Credit quality improved in SNC program in 2022
Credit quality improved in 2022 in the Shared National Credit portfolio, although the results do not fully reflect increasing interest rates and softening economic conditions that began to affect borrowers in the second half of last year, federal agencies said this week.
FHFA issues guidance on mortgage servicing rights for managing counterparty credit risk
The notice is intended to communicate FHFA’s supervisory expectations for Fannie Mae and Freddie Mac “to establish and implement risk management policies and procedures for monitoring and valuing seller/servicers’ mortgage servicing rights.”
FSOC report warns of vulnerabilities in CRE, residential mortgage markets
Economic uncertainty and rising borrowing costs have increased risk in both the residential and commercial real estate sectors, which could increase risks to U.S. financial stability, the Financial Stability Oversight Council warned in its annual report.
Banking industry is strong, but economic warning signs remain, OCC report says
Banks remain well capitalized and with ample liquidity and sound credit quality, “although macroeconomic headwinds are a concern,” according to the Office of the Comptroller of the Currency’s Semiannual Risk Perspective report for fall 2022 issued today.
Basel Committee newsletter addresses credit risk in real estate, leveraged lending
The Basel Committee on Banking Supervision today issued a newsletter focusing on credit risk, which has risen in recent months due to inflation and the COVID-19 pandemic.
FDIC lookback: banking conditions improved in 2021
The FDIC today said that the banking environment improved in 2021 as the economy recovered from a period of economic hardship the year prior.
Hsu: Banks should focus on counterparty credit, concentration risk amid economic uncertainty
As high inflation and economic uncertainties persist, Acting Comptroller of the Currency Michael Hsu said that “now is the time for banks to take a fresh look at their exposures and take actions to adjust their risk positions—to ‘trim their sails,’ so to speak—ahead of potential uncertainty and volatility.”
Fed: Large Banks Continue to be Resilient
The nation’s large banks at the core of the financial system “continue to be resilient” while some financial vulnerabilities remain elevated, the Federal Reserve said today in its semiannual monetary policy report.