Love the channel! Already watched all the Risk Management videos. It's so well explained, thanks so much for these videos!! I finally understand Basel 3, IRRBB, etc.
Very simple and clearly explained the whole scenario of SVB banking disastaer . I greatly appreciate the way you present it Sir.. Huge thanks to you.. Keep sharing you extensive knlowledge and expertise which people like me would take advangtage of it and improve our knowldge base on banking.
It would be interesting see a real life worked example. I.e. You calculate the EVE and NII, what issues do you see and what can you do? In the case of SVB I assume that thetshould of seen a large change in PV applying a particular shock to interest rates but then what? I guess this is where you need AFS and HQLA in times of distress?
So what are the regulators doing while performing inspections? What are internal auditors doing? What are capital adequacy managers doing? Why all the noise after the failure?
Love the explanation. Question: do you think if Trump wouldn’t have lifted the regulation, they would have been forced to use AOCI in their calculations and therefore avoid the fail?
I think the main problem was that they did not have any real supervision. With better regulation, they would have had regular inspections from banking authorities who would have definitely seen the problem
Love the channel! Already watched all the Risk Management videos. It's so well explained, thanks so much for these videos!! I finally understand Basel 3, IRRBB, etc.
Most concise explanation with all important concepts addressed.
Very simple and clearly explained the whole scenario of SVB banking disastaer . I greatly appreciate the way you present it Sir.. Huge thanks to you.. Keep sharing you extensive knlowledge and expertise which people like me would take advangtage of it and improve our knowldge base on banking.
Beautifully explained 👏
It would be interesting see a real life worked example. I.e. You calculate the EVE and NII, what issues do you see and what can you do?
In the case of SVB I assume that thetshould of seen a large change in PV applying a particular shock to interest rates but then what?
I guess this is where you need AFS and HQLA in times of distress?
Could you look at PACW? Is it the next bank to fail?
So what are the regulators doing while performing inspections? What are internal auditors doing? What are capital adequacy managers doing? Why all the noise after the failure?
You are right this is an incredible failure of internal and external controls. I am also dumbfounded
Love the explanation. Question: do you think if Trump wouldn’t have lifted the regulation, they would have been forced to use AOCI in their calculations and therefore avoid the fail?
I think the main problem was that they did not have any real supervision. With better regulation, they would have had regular inspections from banking authorities who would have definitely seen the problem
Wonderful
Abit strange that banking book doesnt reflect the mv, unlike the impairment accounting
I mean it makes sense as the bank does not plan on selling these assets - the market value does not really matter for them.
@@FinAndEcon….unless there are issues with liquidity right?
@@FinAndEcon
Except for Large banks, small banks are not required to mark to market held to maturity securities.
good
Why blame Trump?