Hoosier Banker 25 % Increase duration of client relationships through training/education/incentives; % Cross-sell strategies and customer loyalty programs. If your bank experienced higher betas earlier in the cycle, how much will it take for competition to catch up? If your bank is smaller than market competition, will it lose market share? If loan demand is picking up, how long can the bank support these growth levels with these higher funding costs? As you and your bank think about these questions, remember that there are many reasons other than interest rate for customers to choose to deposit their funds at the bank. Studies have determined that consumers place higher value on attributes such as convenience, service, availability and technology over deposit rate pricing. Also keep in mind that assumptions by definition have limitations, since they can vary from what actually occurs in reality. That’s why, as prudent risk managers, we should periodically stress-test our assumptions with worst-case scenarios. If your bank hasn’t been talking about implementing these concepts, now is definitely the time to do so. Revisiting these interest rate risk concepts, making adjustments to your asset liability management model and stress-testing are all the right ingredients to a successful exam visit from your regulators. HB twitter.com/indianabankers facebook.com/indianabankersassociation linkedin.com/company/indiana-bankers-association facebook.com/IBAfutureleadershipdivision Providing Creative Financing Solutions to Support Community Development Since 1993 We have an unwavering belief that all people deserve the opportunities provided by living in healthy communities. Ψ Ϊ 4 in Community Impact Ψ Ϊ Ͷ 4 in Total Investments Ψ Jobs Created Ψ Homes Created for Families in Need By working closely with investors, developers and local stakeholders, we bring the expertise, capital and resources to markets in need and improve lives. advancing community cinnaire.com 844-4CINNAIRE The IBA Roundtable Series is designed to provide a forum for peer exchange. Each roundtable will have a peer moderator to facilitate the exchange of ideas. Click on the icon above in HB Digital for more information or to register, or go to: indianabankers.org/calendar-of-events Indianapolis OCT. 4 Human Resources Roundtable
RkJQdWJsaXNoZXIy MTg3NDExNQ==