Federal Deposit Insurance
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-10-2016
February 3, 2016
INTEREST RATE RISK VIDEOS UPDATED
Summary: As part of the FDIC's Community Banking Initiative, the FDIC is announcing the release of updated videos
on interest rate risk. The new videos provide financial institution directors, management and staff with resources for
better understanding interest rate risk and how it can be prudently managed.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies
to all FDIC-supervised financial institutions.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer / Chief Financial
Officer
Related Topics:
Joint Policy Statement on Interest Rate
Risk (FIL-52-96)
Advisory on Interest Rate Risk
Management (PR-2-2010) - PDF (PDF
Help)
Interagency Advisory on Interest Rate Risk
Management: Frequently Asked
Questions (FIL-2-2012) - PDF (PDF Help)
Managing Sensitivity to Market Risk in a
Challenging Interest Rate
Environment (FIL-46-2013)
Contact:
William R. Baxter
Senior Policy Analyst
WBaxter@fdic.gov
(202)898-8514
Note:
FDIC Financial Institution Letters (FILs) are
available on the FDIC's Web site
at www.fdic.gov/news/news/financial/2016/.
To receive FILs electronically, please visit
http://www.fdic.gov/about/
subscriptions/fil.html.
Paper copies may be obtained through the
FDIC's Public Information Center, 3501
Fairfax Drive, E-1002, Arlington, VA 22226
(1-877-275-3342 or 703-562-2200).
Highlights:
Financial institution balance sheets continue to reflect a heightened
mismatch between asset and funding maturities that, coupled with
tighter net interest margins, have left financial institutions more
vulnerable to rising interest rates.
The FDIC continues to emphasize the expectation that institutions
manage interest rate risk in a prudent manner.
The FDIC previously issued a video on interest rate risk tailored to
directors as well as a series of more technical videos designed for
management and staff involved in interest rate risk management.
To reflect recent industry data and to expand on relevant topics, the
FDIC has released updated videos.
The videos address industry trends, board and management
responsibilities, types of interest rate risk, different risk measurement
systems, key modeling assumptions, internal controls, and independent
review.
The video for directors can be accessed
at https://fdic.gov/regulations/resources/director/virtual/irr.html, and the
series of videos for bank management and staff involved in interest rate
risk management can be accessed
at https://fdic.gov/regulations/resources/director/technical/irr.html.
Alternatively, FDIC-insured institutions may download the videos
through FDICconnect by contacting their FDICconnect coordinator.Inactive
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-10-2016
February 3, 2016
INTEREST RATE RISK VIDEOS UPDATED
Summary: As part of the FDIC's Community Banking Initiative, the FDIC is announcing the release of updated videos
on interest rate risk. The new videos provide financial institution directors, management and staff with resources for
better understanding interest rate risk and how it can be prudently managed.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies
to all FDIC-supervised financial institutions.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer / Chief Financial
Officer
Related Topics:
Joint Policy Statement on Interest Rate
Risk (FIL-52-96)
Advisory on Interest Rate Risk
Management (PR-2-2010) - PDF (PDF
Help)
Interagency Advisory on Interest Rate Risk
Management: Frequently Asked
Questions (FIL-2-2012) - PDF (PDF Help)
Managing Sensitivity to Market Risk in a
Challenging Interest Rate
Environment (FIL-46-2013)
Contact:
William R. Baxter
Senior Policy Analyst
WBaxter@fdic.gov
(202)898-8514
Note:
FDIC Financial Institution Letters (FILs) are
available on the FDIC's Web site
at www.fdic.gov/news/news/financial/2016/.
To receive FILs electronically, please visit
http://www.fdic.gov/about/
subscriptions/fil.html.
Paper copies may be obtained through the
FDIC's Public Information Center, 3501
Fairfax Drive, E-1002, Arlington, VA 22226
(1-877-275-3342 or 703-562-2200).
Highlights:
Financial institution balance sheets continue to reflect a heightened
mismatch between asset and funding maturities that, coupled with
tighter net interest margins, have left financial institutions more
vulnerable to rising interest rates.
The FDIC continues to emphasize the expectation that institutions
manage interest rate risk in a prudent manner.
The FDIC previously issued a video on interest rate risk tailored to
directors as well as a series of more technical videos designed for
management and staff involved in interest rate risk management.
To reflect recent industry data and to expand on relevant topics, the
FDIC has released updated videos.
The videos address industry trends, board and management
responsibilities, types of interest rate risk, different risk measurement
systems, key modeling assumptions, internal controls, and independent
review.
The video for directors can be accessed
at https://fdic.gov/regulations/resources/director/virtual/irr.html, and the
series of videos for bank management and staff involved in interest rate
risk management can be accessed
at https://fdic.gov/regulations/resources/director/technical/irr.html.
Alternatively, FDIC-insured institutions may download the videos
through FDICconnect by contacting their FDICconnect coordinator.Inactive