acxell Advisor Newsletter

Welcome to acxell's knowledge base of emerging risk management issues

Inside Fall 2020 Issue

Now is the time to review your Internal Controls

The COVID-19 pandemic has had a dramatic impact on the way banks and other organizations do business. Some banks have closed branches — and many are operating with reduced staff or relying more heavily on remote workers. These conditions create internal control challenges. This article suggests that it’s a good idea for banks to review their internal control policies and procedures and consider strategies for making them more efficient and effective...Read the full article

Cybersecurity tips for remote workers

Remote work has become a way of life for many banks and other businesses. And while it’s a great way
to keep workers productive in the current environment, it also introduces new vulnerabilities to hacking and other cybercrime. Here are several tips for making remote work as safe as possible...Read the full article

Hedge your bets
Balance vs. reward in asset concentrations

A community’s economy is often based on just one or two industries, with a smattering of others in the mix. But primarily lending to just one industry, whether it’s to farmers, manufacturers or any other group, can throw a community bank’s loans out of whack and make it tough to recover if that industry takes a hit. This article discusses how community banks can balance risk and reward as they provide lending services to local industries...Read the full article

Are off-site examinations here to stay?

During the COVID-19 pandemic, many banking regulators have shifted to an off-site, or remote, examination process. Many people believe that off-site examinations — with their obvious efficiencies and other benefits — will become standard operating procedure in the future. This article explains the Federal Reserve’s position on use of off-site examinations under unique circumstances and looks at some key factors in how examiners determine whether they’re appropriate, including a bank’s risk profile and management preferences...Read the full article

BANKWire - Fall 2020

This summary of recent developments in banking discusses several significant revisions to the FFIEC’s Bank Secrecy Act/ Anti-Money Laundering Examination Manual. It also notes that the OCC has proposed an update to its regulations that permits banks to hold in-person meetings, and that in June the OCC released its Spring 2020 Semiannual Risk Perspective, reporting key issues facing the federal banking system. In addition, the article points out that the FFIEC recently provided cloud computing guidance.

FFIEC UPDATES BSA/AML EXAMINATION MANUAL
OCC PROPOSES VIRTUAL MEETINGS
OCC HIGHLIGHTS KEY BANKING RISKS
FFIEC PROVIDES CLOUD COMPUTING GUIDANCE

Inside Summer 2020 Issue

Keeping credit viable during a crisis
CARES Act helps community banks assist their borrowers

In response to the Coronavirus (COVID-19) pandemic’s negative impact on the U.S. and global economies, federal lawmakers have taken a number of steps to stimulate the economy and sustain credit flow — including passing the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This article discusses several of the act’s provisions designed to help community banks extend credit to struggling businesses and individuals. A sidebar looks at whether banks might be entitled to refunds of prior years’ taxes...Read the full article

Take steps now to handle liquidity risk

As a result of the Coronavirus (COVID-19) pandemic, businesses and banks are suffering under nearly unprecedented economic pressures that are likely to play out for some time. This article notes that it’s more important than ever for community banks to set up appropriate strategies, policies, procedures and limits to manage and mitigate their liquidity risk. These may include ensuring effective board and management oversight and implementing appropriate liquidity risk measurement and monitoring systems, among other steps...Read the full article

Will CECL affect your incentive compensation plans?

For most community banks, the current expected credit loss (CECL) model doesn’t take effect until 2023. Nevertheless, given the impact on banks’ financial statements and accounting processes, it’s a good idea to start preparing as early as possible. This article points out that it’s important for banks to understand CECL’s potential impact on incentive compensation plans. It discusses the impact of the new rules and what steps banks should take to prepare to implement the rules...Read the full article

BANKWire - Summer 2020

This brief summary of recent developments in community banking explains that the federal banking agencies have issued a rule temporarily offering appraisal relief to real estate transactions affected by the Coronavirus (COVID-19). It also notes that the Federal Reserve Board has relaxed a restriction on savings accounts transfers and points out that the Coronavirus Aid, Relief, and Economic Security (CARES) Act defers payroll taxes, also temporarily...Read more