Community Bank Climate Risk Analytics: A Case Study
How to use Portfolio Weather Event Risk analytics to evaluate potential flood risks for community banks By Avik Ray, Director, Invictus Climate-Risk Analytics Extreme weather events are happening more often in the United States. And that should be of concern to community banks. When extreme ...
Examiners Renew CRE Concentration Focus
CRE Exam Essentials™ Program Can Help Banks Get Ready By Adam Mustafa, Invictus Group CEO Bank regulators are getting serious about CRE concentrations again. The Summer 2022 issue of the FDIC’s Supervisory Insights issues a harsh warning to banks with CRE concentrations about getting their ...
How to Prepare for Climate Risk Management
Bank regulators refer to two types of risk from climate change: The physical risks to property or people from extreme weather or changes in climate. Transitions risks, stemming from extra stress on financial institutions due to climate change-related changes in policy, consumer or business behavior, ...
Invictus Names Head of Climate Risk Analytics
The Invictus Group has named Avik Ray as director of its new climate risk division. Ray will be responsible for the development of analytics to help community banks navigate expected regulatory requirements for climate risk. His unique background in finance and visual communication has produced ...
Invictus Creates New Climate Risk Division
The Invictus Group has created a new climate risk analytical division to help community banks. “Our company, which cemented its reputation in stress testing before it became a bank standard, saw the need for this type of community bank analytical product,” said Invictus CEO Adam ...
Invictus Severe Stagflation Scenario
By Adam Mustafa, Invictus Group CEO The Invictus Severe Stagflation scenario tests conditions under the simultaneous occurrence of a severe global recession and aggressive monetary policy that includes rapid and substantial increases in the Fed Funds Rate and accelerated quantitative tightening in response to persistent ...
The Regulatory Push for Community Bank Climate Change Risk Management
The regulatory pressure on community banks to show they understand how climate change will affect their banks is only going to increase in the years ahead. Although regulators are focusing first on the largest, systemically important banks, they have made it clear that the issue ...
Need to Raise a Concentration Limit? Here’s How to Do It (Properly)
By Adam Mustafa, Invictus Group CEO Early warning systems are great, but sometimes they need to be revisited to preserve their value. This is often the case with lending concentration limits as a percentage of capital at community and mid-sized banks. Your bank may be ...
WARMing up to SCALE
Many small community banks have yet to make their final decision regarding CECL implementation. Although there are many potential solutions to calculating the ACL, small banks seem to gravitate toward the “Weighted Average Remaining Maturity” (WARM) or “Scaled CECL Allowance for Losses Estimator” (SCALE) methods ...
Where Does Your AOCI Go Next?
By Leonard J. DeRoma, Invictus CFO We recently published a post by my partner, Adam Mustafa, noting that AFS bond portfolio losses across the industry reached record levels in the first quarter of 2022. While the increases in interest rates are nowhere near (yet) what ...
