Bank Accounting & Finance articles from June 2001

Bank Accounting & Finance archives from June 2001

EDITORIAL.(Brief Article)(Editorial)
June 22, 2001... "Measuring Liquidity Risk Taking" by William H. Schomburg III: Part historical analysis, part market psychology, part cost-control strategy; part survival tactics, liquidity risk is among the least measured and understood, in part because so...

Measuring Liquidity Risk Taking.
June 22, 2001... While liquidity is a difficult concept to define, the effects are quickly evident when a bank's access to liquidity disappears. The importance of liquidity is highlighted by the continued disintermediation of core deposits requiring banks to...

Basis Risk in the Balance Sheet.
June 22, 2001... Most of you are familiar with the phrase, "winning the battle, but losing the war." This adage may appropriately be applied to asset/liability managers, who have valiantly attempted to protect income against market movements, only to see...

Case Study: Implementing Enterprise Risk Management.
June 22, 2001... There are many hurdles to implementing enterprise risk management (ERM). Many questions are common: "Don't our auditors already do this for us?" "I thought we have insurance?" "Why should we build more bureaucracy?" "We already do this; so why...

Internet Banking: Translating e-Business Strategy into Action.
June 22, 2001... Banks today face difficult decisions in translating strategies, especially e-business strategies, into action. According to the Grant Thornton Eighth Annual Survey of Community Bank Executives, 43% had Internet banking capabilities in 2000, and...

Using Funds Transfer Pricing to Support Business Decisions.
June 22, 2001... The primary purpose of a funds-transfer-pricing (FTP) process is to remove interest-rate risk from a bank's lines of business and to centralize that risk in a treasury unit. The idea here is that the lines of business should not be responsible...

Identifying and Managing Model Risk under OCC Bulletin 2000-16 and Related Agency Mandates.(Brief Article)
June 22, 2001... Office of the Comptroller of the Currency (OCC) Bulletin 2000-16, issued in August 2000, offers guidance for managing model risk in response to the increasing dependence of financial institutions on computer-based models. Model risk is defined...

Financial Model Validation: Making Business Sense.
June 22, 2001... Financial modeling has become almost as much a part of the banking business as lending and accounting, as a deregulated financial marketplace has literally overtaken the industry. In today's world, where any banker's decision can have several...

Measuring Operational Risk.
June 22, 2001... The issue of operational-risk-related capital charges has come to the forefront of risk management with the most recent release of a consultative document on the Basel Capital Accord. (For an overview of the accord, see "The New Basel Capital...

Banks Win Another One--for the Time Being.
June 22, 2001... Recently, the tax court handed banks another victory in the litany of cases dealing with specific capitalization issues related to INDOPCO. [1] In Metrocorp, [2] the tax court determined in a divided opinion that fees paid to exit the Savings...

SEC Staff Comments on Two Topics: Loan Sales and Public Disclosures for Financial Institutions.
June 22, 2001... On March 26, 2001, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration...