Risk management | ABA Banking Journal

November 12, 2019

Fannie, Freddie Transfer $102B in Credit Risk

Since the Federal Housing Finance Agency launched a credit risk transfer program for GSEs Fannie Mae and Freddie Mac in 2013, the enterprises have transferred $102 billion in credit risk to private investors, amounting to about 3.3% of $3.1 trillion in unpaid principal balance, the FHFA said today. For the first half of 2019, the GSEs transferred about $10.5 billion worth of credit risk. Transfers included debt issuances, insurance and reinsurance transactions, senior-subordinate securitizations and several kinds of lender-collateralized recourse transactions.

Compliance and Risk

November 8, 2019

Brainard Discusses Implications of Climate Change on Financial Stability

In remarks at a Federal Reserve Bank of San Francisco event today, Fed Governor Lael Brainard discussed the potential implications that climate change could have for financial stability, and the importance of properly pricing in climate change-related risk.

ABA Banking Journal Podcast

October 30, 2019

Podcast: Measuring and Managing the Risk of Employee Misconduct

Conduct issues have driven some of the most significant enforcement actions, including those affecting the reputation of the industry, both in the United States and around the world. As regulators and bankers take a close look at conduct risk, the ABA Banking Journal Podcast welcomes the global head of conduct risk at Credit Suisse.

Compliance and Risk

October 25, 2019

ABA Data Bank: Majority of Community Banks Preparing for Libor Transition

Cybersecurity

October 18, 2019

ABA’s Benda Emphasizes Need for Collaboration on Cloud Security

Testifying before the House Financial Services Committee’s Task Force on Artificial Intelligence today, ABA SVP Paul Benda highlighted the ways banks are using cloud technology and urged greater collaboration to enhance cloud security and efficiency.

Economy

October 17, 2019

Banks Cite Intraday Payments Flows as Key Driver for Setting Reserve Floors

In a Federal Reserve survey released today, senior financial officers from 80 U.S. banks and U.S. branches of foreign banks reported that their lowest comfortable level of reserve balances was slightly over $652 billion, down slightly from a survey earlier this year.

Cybersecurity

October 17, 2019

Cyber Complications for Vendor Risk Management

Tips for ensuring cybersecurity vendor due diligence at your bank.

Compliance and Risk

October 16, 2019

Agencies Propose Policy Statement, Guidance to Reflect CECL Changes

As banks prepare to implement the current expected credit loss accounting standard, the financial regulatory agencies have issued a proposed interagency policy statement on allowances for credit losses and proposed interagency guidance on credit risk review systems.

Newsbytes

October 14, 2019

ABA: SA-CCR Proposal Could Lead to Higher Costs for Commercial End-Users

The federal banking regulators’ standardized approach for counterparty credit risk proposal, or SA-CCR, could have unintended consequences for commercial end users—such as corn producers or beverage manufacturers—who rely heavily on financial derivatives.

Compliance and Risk

October 14, 2019

Getting from Red to Green

The next-generation root cause analysis to prevent redlining.

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