Fall Regulatory Summit

Internal Use Only Charge Off Rates at Banks (source: Board of Governors of the Federal Reserve System)

7.0%

Cons

6.0%

C&I

5.0%

RE

4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%

1998 Q2

1999 Q1

1999 Q4

2000 Q3

2001 Q2

2002 Q1

2002 Q4

2003 Q3

2004 Q2

2005 Q1

2005 Q4

2006 Q3

2007 Q2

2008 Q1

2008 Q4

2009 Q3

2010 Q2

2011 Q1

2011 Q4

2012 Q3

2013 Q2

2014 Q1

2014 Q4

2015 Q3

2016 Q2

2017 Q1

2017 Q4

2018 Q3

2019 Q2

2020 Q1

2020 Q4

2021 Q3

2022 Q2

2023 Q1

FALL REGULATORY SUMMIT Denver, CO – September 25, 2023

Internal Use Only

Some Comments on Banks

• 2008 was about credit risk, 2023 is about interest rate risk. But, what if they intersect? • Assets & Liabilities mismatched – was SVB that unique? • Fed, FDIC & US Treasury response. • Are the other risk to banks?

FALL REGULATORY SUMMIT Denver, CO – September 25, 2023