The magazine for bank accounting and financial officers
Bank Accounting & Finance helps financial institutions implement financial reporting requirements, measure and manage risk, and keep up with the latest regulatory requirements.
Readers are CFOs, treasurers, controllers, accountants, auditors, cashiers, and financial VPs.
February 2010 issue
Private Equity, Regulators and Troubled Banks: An Inconvenient Alliance of Convenience
J. V. Rizzi
Assisted transactions involving failed institutions are not the only means by which private equity can make bank investments.
The Financial Crisis: Implications for Regulatory Capital
By Dwight C. Smith III
Regulators’ actions provide indications, some very concrete, as to how the federal banking agencies will implement regulatory capital policy in the future.
Stress Testing for Capital Management: Best Practices
By Emil Matsakh, Yigit Altintas and Will Callender
Developing an internal, well-structured stress test using a bank’s internal loss data and loan-level or segment-level portfolio characteristics can make a sizeable difference versus using industry-generic assumptions.
Duration and Convexity for Assessing Interest-Rate Risk
By Nivine F. Richie, R. David Mautz, Jr., and William H. Sackley
Reducing the duration and convexity gaps can reduce potential losses in equity when interest rates increase.
Other-Than-Temporary Impairment: Identifying the Amount of Credit Loss
By Thomas Rees and Dustin Ruta
Accounting rules for recognizing OTTI changed significantly in 2009.
Liquidity Management
Liquidity Risk Management: Connecting the Pieces
Leonard Matz
No financial institution can ever afford to hold enough liquid assets under normal conditions to fully protect against potential contingencies.
SEC Update
Proposed Rules for Credit Ratings Disclosures, Pay-to-Play Practices, Municipal Securities Disclosures
By Benjamin R. Silliman
SEC proposals would strengthen oversight of ratings agencies and improve their disclosures.
Risk Measurement
The Art of Risk Modeling and Assessment
Roderick Powell
Financial models, no matter how complex or subtle, can never take the place of sound judgment from a competent, seasoned risk manager.
Financial Products
Life Insurance Settlements
John R. Segerstrom
Lenders are being regularly presented with life insurance settlements as collateral for loans to the current or prospective owners.