Reserve Bank of New Zealand’s Post

How do we identify the best treatment paths for our client's customers? The answer lies in the effective use of data. We analyse our clients’ debt portfolios using an extensive range of data points and create scorecards which outperform the more generic credit reference agency scorecards. These enable us to determine the next best actions and proactively prioritise early identification of vulnerability and financial hardship. We also use outcome data to improve our scoring, so results continuously get better! To find out more, visit our website 👉 https://lnkd.in/e-PbdsvM #PortfolioAnalysis 

In Visions of Financial Order, Kim Pernell shows how differences in national financial regulatory systems emerged from divergent beliefs about economic order and prosperity. The global financial crisis of the late 2000s was marked by the failure of regulators to rein in risk-taking by banks. And yet regulatory issues varied from country to country, with some national financial regulatory systems proving more effective than others. In Visions of Financial Order, Kim Pernell traces the emergence of important national differences in financial regulation in the decades leading up to the crisis. To do so, she examines the cases of the United States, Canada, and Spain—three countries that subscribed to the same transnational regulatory framework (the Basel Capital Accord) but developed different regulatory policies in areas that would directly affect bank performance during the financial crisis. In a broad historical analysis that extends from the rise of the first modern chartered banks in the 1780s through the major financial crises of the twentieth century and the Basel Capital Accord of 1988, Pernell shows how the different (and sometimes competing) principles of order embedded in each country’s regulatory and political institutions gave rise to distinctive visions of order and prosperity, which shaped subsequent financial regulatory design. Pernell argues that the different worldviews of national banking regulators reflected cultural beliefs about the ideal way to organize economic life to promote order, stability, and prosperity. Visions of Financial Order offers an innovative perspective on the persistent differences between regulatory institutions and the ways they shaped the unfolding of the 2008 global financial crisis. Now available, learn more: https://hubs.ly/Q02LDvfz0

Weekly Post Strategies 2024 #18 Weekly Post Series topics include Research, Strategies, Products A New Approach to Income Simulation in Balance Sheet Management   Use Performance-at-Risk (PaR) to measure the interest rate risk of the balance sheet or strategies.   Last week, I discussed a class of balance sheet items and non-maturity deposit accounts. This week, I discuss an interest rate risk measure for stress testing. Yesterday, I examined the root causes of the Republic First Bank failure. A practical tool to simulate the interest rate stress test may avert such failure, allowing the ALCO to use a Risk Appetite Statement (RAS) to trigger management to take remedial actions ahead of time.   Challenge   The Federal Financial Institutions Examination Council (FFIEC) issued the Interagency Interest Rate Guidelines 2012. One key point in these guidelines is the use of Income Simulations.   Income Simulations measure the potential effect of changes in market interest rates on earnings. Most institutions should use income simulations when measuring risk-to-earnings. These simulations help institutions understand how changes in interest rates could affect their income and, thus, their overall financial health.

[Call For Papers] 23rd Annual FDIC Bank Research Conference 19 Sep 2024 - 20 Sep 2024, Arlington, VA The FDIC's Center for Financial Research invites submissions for the 23rd Annual Bank Research Conference to be held on September 19-20, 2024 in Arlington, Virginia. We invite theoretical and empirical papers on issues related to financial regulation, competition and performance in the banking and financial sectors, financial stability, bank and nonbank financial intermediation, bank capital, and risk management. We also invite submissions on emerging topics, including, but not limited to: - Role and effectiveness of deposit insurance in ensuring stability - Deposit insurance reform options and considerations - Banking amid fluctuating interest rates - Cryptoassets and tokenization of assets and liabilities - Climate-related financial risks - Fintech and trends in financial products, services, and technology The poster session provides a forum to stimulate the exchange of ideas. Poster proposals will be selected for presentation based on reviews by FDIC economists and the Organizing Committee. Papers from selected posters may be invited for submission to the FDIC Center for Financial Research Working Paper Series. Lodging and food will be provided for poster presenters. https://lnkd.in/dd2kSyWU Posters will be printed on large-format poster boards and displayed in the reception area during conference breaks. Poster presenters will also record a five-minute video presentation of the paper that will be played in the main hall before panel sessions. [PAPER SUBMISSIONS]: Submissions should include a complete draft of the paper and authors should arrange for a letter of recommendation from the author's advisor to be sent to BankResearchConference@fdic.gov. Submissions may have senior coauthors, but the presenter must be a Ph.D. student. Papers must be received by April 12, 2024. Recommendation letters must be received by May 10, 2024. Authors will be notified about the status of their submission in July 2024. To submit a paper for the poster session, visit the Bank Research Conference web page - https://lnkd.in/dT_vB5DN

$CNA - Option Volatility signal: CNA Financial pin risk is slipping: As of the 16th of April 2024, CNA Financial owns the market risk adjusted performance of 0.1708, and Coefficient Of Variation of 2378.31. CNA Financial technical analysis gives you the methodology to make use of past data patterns to determine a pattern that approximates the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for CNA Financial, which can be compared to its peers in the sector. Please confirm CNA Financial mean deviation, standard deviation, treynor ratio, as well as the relationship between the downside deviation and information ratio to decide if CNA Financial is priced correctly, providing market reflects its prevailing price of 43.34 per share. Given that CNA Financial has jensen alpha of 0.0337, we suggest you to validate CNA Financial's latest market performance to make sure the company can sustain itself in the future. https://lnkd.in/gsxHrZME

We’re excited to announce the latest data release for the Named Peer Ratings data pool! This kicks off the year for this data pool, where banks collaborate to exchange risk ratings and parameters for mutual borrowers. Covering over 30,000 names across North America, Europe, South Africa, and Australia, our member banks rely on this data pool to compare risk parameters with their counterparts in similar regions. Additionally, they use it to strengthen their early warning system for at-risk borrowers in the Large Corporate, Sovereign, Banks, and Financial Institutions sectors. For more details on this data release and other data pools we oversee, click here ➡ https://lnkd.in/gqG7-BM4.

You don't have to be an expert to save on credit data costs.  All you need to do is to:  👉 Consult with benchmarking experts  Takeaway: Expertise can come from your partners, not just in-house. #creditrisk

Utilising our market-leading data analysis, Just DoorScore will help you select and prioritise cases suitable for enforcement activity. This means you’ll improve engagement, increase resolution and collections outcomes, and reduce unnecessary costs. We also prioritise early identification of vulnerability or financial hardship so you know where to offer additional support. To learn more about how we use our scoring systems to achieve better debt outcomes for our clients, visit our website 👇 https://lnkd.in/emBvU4N6 #enforcement #BetterDebtOutcomes #dataanalysis

On 17 April 2024, the Bank of England published an article discussing the use of scenario analysis to measure climate-related financial risks 🔎 In Mazars in the UK's latest insight, Pierre-Alexandre GERMONT and I look at: 🔵 The Bank of England’s approach to scenario analysis 🔵 Conducting asset-specific scenario analysis 🔵 What does this mean for UK financial institutions Read more ➡ http://maza.rs/6044YKD0s #Banking #ClimateRisk #FinancialRisk #ScenarioAnalysis

Understanding the Power of Quantitative Analysis in Credit Ratings 📊 In the ever-evolving landscape of finance, quantitative analysis stands as a cornerstone of credit rating processes. As financial markets become more complex, the need for precise, data-driven insights has never been greater. Quantitative analysis involves leveraging mathematical models, statistical techniques, and financial metrics to assess a company’s creditworthiness. This rigorous approach allows analysts to: 📈 Evaluate Financial Health: By examining key indicators such as liquidity ratios, leverage ratios, and profitability metrics, we can paint a comprehensive picture of a company’s financial stability. 📉 Predict Default Risk: Advanced models help forecast the likelihood of default, enabling investors and stakeholders to make informed decisions. 📊 Enhance Objectivity: Data-driven insights reduce subjective biases, ensuring that credit ratings are based on robust and consistent criteria. 🌍 Adapt to Market Dynamics: Quantitative tools can quickly adapt to changing market conditions, providing timely updates and maintaining the relevance of credit ratings. In my current profile, we work to harness the power of quantitative analysis to deliver accurate and reliable credit ratings, empowering our clients to navigate the financial landscape with confidence. 🔗 Let’s connect and discuss how quantitative analysis is shaping the future of credit ratings! #CreditRatings #QuantitativeAnalysis #Finance #RiskManagement #DataDrivenInsights