Operations

Liquidity planning in a digital age

Bank building photo

The collapse of Silicon Valley Bank almost a year ago demonstrated the damaging consequences of an old-fashioned bank run when combined with the latest digital technology.  [Continue]

Crisis Ready

Bucky Porter photo

Banks must proactively develop and maintain a plan for protecting their infrastructure so they can continue functioning should disaster strike. [Continue]

Deposits: The value of volume

No matter the market, a bank today likely has competitors offering 5.5 percent on a certificate of deposit. With competitors pushing the pricing envelope, leaders certainly may wonder: Will high cost of funds become a threat to return on assets? [Continue]

How term deposits can reclaim their crown

If bankers could choose a funding portfolio made up of deposits committed for a time, or deposits that could leave at any time, they’d choose the former. But, looking at the industry’s deposit composition during the last 30 years, it appears just the opposite. If our asset-liability logic says banks would generally prefer term deposits, what dethroned the CD? Bankers already know the common answers: Interest rates and/or depositor preference. [Continue]

What Section 1071 means for banks

The Consumer Financial Protection Bureau’s final rule implementing Section 1071 of the Dodd-Frank Act has made waves in the banking industry since its announcement in late March.  [Continue]

A case for raising the deposit insurance cap

In an April roundtable hosted by The Brookings Institution, Prasad Krishnamurthy, professor of law at the University of California, Berkeley, said the Federal Reserve should consider extending its deposit insurance cap far beyond what it is now. [Continue]