Our budgeting process gives us an idea of where we think we are headed in the next year. Many times, what we think will happen, is not what happens in reality. After all, if we all had a crystal ball at our disposal, you would not be reading this blog right now (I know I would not be writing it!).
Most of us hate planning, so why would I want to start now, when I could wait until the usual time next year?
The purchase of an asset liability management (ALM) system presents a problem to many bankers. Often the process begins with the creation of a checklist of features and functions then progresses to comparing vendors. The vendor with the highest "score" wins. While this may be a good start, there are dimensions to the problem that this ignores, specifically the quality and significance of the features identified.
Backtesting can be a painful topic for bankers. In this post, I'll answer the top 5 most common questions I hear about backtesting. I'll reference my first post, Independent Review, Model Validation, and Backtesting: Same Thing, Only Different, so you might want to revisit it before reading on. In that blog, we looked at the interrelationship of these three items and brought up a few questions on backtesting.
Specifically, we questioned 5 things: who should do it, how often should it be done, what period should be covered, do you need to backtest model results and assumptions, and why even bother if market rates really aren’t changing.
Money isn't everything! Yeah, it's important, but it's not all that matters to employees -- and upping the pay scale isn't always possible. When a raise isn't an option, consider these three alternatives to reward your high-achieving employees.
True or False
A budget is a once a year process for an institution.
True: A budget is a process typicallydone once a year to establish targets/goals of measure to be used as guidelines throughout the year.
One of the worst ways to get someone to do something you want is to tell them what to do. Most parents learn that lesson the hard way. The better way to incent certain behaviors is to have the other person see the benefit of exhibiting the desired behavior.
As a CEO or CFO of a community bank, you are well aware that mega banking institutions are investing heavily in innovative technologies designed to take customers away from you. Having serviced the industry for over 25 years, I've seen many changes, but none as profound as outlined in two recent articles highlighting the impact of FinTech.