BAS Presentations - March 2023

3/1/2023

Commonalities of Failed Banks Summary Analysis of Failed Bank Reviews report from the Office of the Inspector General Aggressive growth Concentration in construction and land development loans Reliance on noncore funding Poor risk management Compensation incentives encouraging risk ‐ taking 1 2 3 4 5

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How do Banks Fail?

Interest rate risk materializes

Asset quality issues

Fraud

or

or

Weak earnings

RISK MANAGEMENT PRACTICES

Capital

Liquidity

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4