| A Community Bank Director Advisor | Issue #20 - February 2009 |
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Risk Oversight Comes of Age The 2008 National Association of Corporate Directors Public Company Governance Survey identified risk oversight as one of the “critical areas” for board focus. Risk and crisis oversight climbed to 5th place in 2008, up from 16th place in 2007 and 18th place in 2006. How effective is your board in handling risk oversight? Please answer this one question survey. Click here. We’ll provide you with the results in the next Directors Digest to see how community banks compare with companies from the above noted survey. WIB has significantly increased our knowledge focus on risk management and oversight for both bankers and directors through webinars, publications and seminars. The latest addition is our Chairman’s Forum in June. Nancy
Sheppard TARP
Thoughts The advent of the troubled asset relief program (“TARP”) has provided much needed capital to some banks and left others in a state of unrest. While the Street may view TARP capital as government-backed bridge financing, its allocation is commonly viewed as a stamp of regulatory approval, particularly for banks with slim capital cushions and risky credit profiles. <read more> Response-Ability Call it what you want – TARP, bail-out, life-line, there can only be one result, more “oversight” from the government. Regulators post on their websites, as a matter of public record, Enforcement Actions they have sent to banks around the country. The misfortune of others can be a learning experience for your bank. <read more> Service
Charge Fee Income – How to Ensure Your Fair Share If you haven’t been systematically analyzing your bank’s service charge fee income performance, it’s time to learn whether it’s as robust and effectively managed as it could be. Guide your bank to make more money in this key area. <read more> When
Hell Freezes Over-Make sure you Have Skates! Among the myriad effects of the current economic “slow-down”, consumers have experienced the phenomena of freezing or reducing credit lines on open-ended credit. Many credit providers have taken this unpopular stand as a risk avoidance strategy. More and more, consumers are shocked to find that their credit lines have been reduced to an amount that is close to the outstanding balance even though the credit is in good standing. <read more> Slaying
the Deflationary Dragon For banks, deflation will have a substantial impact in 2009. The fact that short-term rates are now essentially zero has serious asset-liability implications for banks, in addition to the usual recessionary challenges of less demand, lower production, higher unemployment and general financial stress. <read more> Just
Say “No” to Yes Men World events have made it all too clear; “group think stinks”. Now is the time to make sure every person in your company is challenging ideas, questioning processes and changing the rules. Somebody has to win and it may as well be YOU! <read more> |
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