Large Bank Supervision Forum eBook

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The Danger of Lagging Indicators CSBS Examiner Conference

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Top 20 Risks . . .

1. Liquidity / Risk Profile (numerator and denominator) 2. Search for Core Deposits (Stable/Volatile/Immed Volatile) 3. Corporate Governance 4. Talent Management 5. Asset Quality / Credit Risk / Competition for good lns 6. Commercial Real Estate (Office Bldg) / Pipeline − Breakout C&I loans backed by real estate 7. Cost of Interest Bearing Deposits 8. Risk Management

17. Stress Testing

− Capital: baseline/severely adverse (also dividend impact) − AQ: shock to cash flow and collateral value − Mgmt: succession planning − Earnings: based on AQ, Liq, and Sensitivity shocks − Liquidity: baseline/uninsured − Sensitivity: +/- 400 (Beta/Decay/Prepay assumptions) 18. Appraisal discrimination − Appraisal Subcommittee − Jan 23 / May 23 / Nov 23 / Feb 24 − Feb 12, 2024 FFIEC Statement of Examination Principles 19. Section 1071 20. QUARTERLY – communicate with your regulator before your Call Report is uploaded

9. Transparency with the regulators 10. Cyber security – tabletop exercise 11. Third party risk management / fintechs 12. Concentration Risk 13. Succession Planning 14. Credible Challenge – document! 15. Board training 16. BSA / New Beneficial Ownership

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