Bank Analysis School

Internal Use Only

How do Banks Fail?

Interest rate risk materializes

Asset quality issues

Fraud

or

or

Weak earnings

RISK MANAGEMENT PRACTICES

Capital

Liquidity

Internal Use Only

Today’s Risks ( 2024 FDIC Risk Review) • Interest Rate Environment - Net Interest Margin Compression • Credit risk (CRE) • Liquidity, Deposits, Funding • Cyber threats • Crypto-Asset Risks • Nonbank Growth