The focus this week was on evolving opinions and market developments regarding the potential acceptance of fair value hedge accounting using interest rate caps.
Most institutions are still benefiting as lower-coupon loans cash flow or reprice into a higher-rate environment. That means interest income can rise even without growth. The challenge is that the story is starting to turn on both sides of the balance sheet.
Institutions of all shapes and sizes are implementing proactive balance sheet strategies to reduce potential exposures, not because they are guessing what will happen to rates, but because they are implementing to be ready regardless.
The DCG advisory consulting team starts every week with an internal discussion of market trends, regulatory developments, and the real experiences of our bank and credit union clients. Here are the notes from this week’s Monday Morning Meeting.
The DCG advisory consulting team starts every week with an internal discussion of market trends, regulatory developments, and the real experiences of our bank and credit union clients. Here are the notes from this week’s Monday Morning Meeting.
The DCG advisory consulting team starts every week with an internal discussion of market trends, regulatory developments, and the real experiences of our bank and credit union clients. Here are the notes from this week’s Monday Morning Meeting.
The DCG advisory consulting team starts every week with an internal discussion of market trends, regulatory developments, and the real experiences of our bank and credit union clients. Here are the notes from this week’s Monday Morning Meeting.
