During a recent Q&A session with investors and analysts, Andy was asked, “how much will bank earnings suffer because of the anticipated increased regulatory burden after SVB?” The implication was that more regulation increases expenses and/or reduces…

ow are our nine initial impressions of the Fed’s report.1  All emboldening is ours. Our citations are not exhaustive nor are they necessarily exclusive to one impression, only, but we only show a citation once. Overall, anticipate more supervision—mo…

There has been much discussion about the effects of climate change and extreme weather on banks' loan portfolios, and there seems to be a strong interest among both regulators and bankers to develop stress tests around such events. Moreover, modelers…

Since Silicon Valley Bank’s demise, many of the usual suspects have been yapping and editorializing about the importance of capital and capital ratios, but it’s never about capital. It’s always about liquidity!

Below, we summarize the guidance and analyze the recent revisions to the tailoring framework. We focus on CCAR Supervisory Expectations for Category I (US GSIBs) vs. Category II or III (≥ $250B total assets) banks but also mention Category IV banks a…

Matt and Andy talked about best practices for managing risk and trends in the industry and how Andy built a career in this fast-growing area, plus, what advice he has for those just starting out.

Spero Risk Associates has substantial experience with all aspects of CCAR, especially model development and validation. We have asked the questions, and we have successfully answered when others have asked. The seven principles of an effective cap…

We like to think of the three main components of validation like Cerebus – validation encompasses the past, present, and future. 1. Evaluation of conceptual soundness, including developmental evidence. 2. Ongoing monitoring, including process verif…