Do credit #underwriters, at banks, actually read the credit memo and the financial risk/credit scorecard attached and prepared by the analysts with the credit proposal?
In some jurisdictions the Head Office, Credit Committee Members don't even give a damn about the due diligence
In some jurisdictions the Head Office, Credit Committee Members don't even give a damn about the due diligence
#Bankers should not keep the Credit Manual for the Auditor's pleasure.
I don't want to expand on this one more.
I don't want to expand on this one more.
And with the implementation of the @BIS_org Accords over the years, bankers have still not updated their manuals, policies, strategies, etc
Some bankers, especially credit back office, RMs, and Middle Office Risk Analysts still don't factor in credit risk metrics as required.
Some bankers, especially credit back office, RMs, and Middle Office Risk Analysts still don't factor in credit risk metrics as required.
What is the point of computing RAROC etc if bankers and treasury dealers don't use these to price loans, etc?
Transfer pricing grid released by the Treasury must include shadow factor prices to compute opportunity cost of funds, risk adj. return and @BIS_org pillar guidelines.
Transfer pricing grid released by the Treasury must include shadow factor prices to compute opportunity cost of funds, risk adj. return and @BIS_org pillar guidelines.
Interest rate risk in the #banking book affects #ALM and #Market #Risk Management.
It's no more middle office or market risk desk duties.
All treasury dealers and other front offices must understand how @BIS_org Accords works at banks.
Sadly, no will!
It's no more middle office or market risk desk duties.
All treasury dealers and other front offices must understand how @BIS_org Accords works at banks.
Sadly, no will!
What should be the hurdle rate against which we can compare Business Line #Rarocs?
The rule of thumb in banking is that if =>
#Raroc< #ROE(Return on Equity) we must increase the price of the loan, and if that cannot be done, the transaction should not be processed.
#ICAAP
The rule of thumb in banking is that if =>
#Raroc< #ROE(Return on Equity) we must increase the price of the loan, and if that cannot be done, the transaction should not be processed.
#ICAAP
Read FI Risk Management by Saunders and Cornett.
Good book for understanding the basics of financial risk management in banking, etc from a Basel perspective.
Good book for understanding the basics of financial risk management in banking, etc from a Basel perspective.
Need training in Risk Management?
Contact me via DM.
Contact me via DM.
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