Risk management

For large banks, the agencies wanted to go above the global standards for residential mortgages, as well as some business loans, to avoid giving those lenders a competitive advantage over smaller peers, according to another person familiar with the proposal.

Measures commonly used may not fully account for regional variations like those seen recently, a working paper by Federal Housing Finance Agency staff finds.

Originations have plummeted and while servicing revenue exists, it could be undermined by expenses if a typical recession follows last year's rate rise.

Single-family officials at an industry conference also quantified some of the progress they're making with alternative credit data, and noted that digital validations can help reduce defects.

Regional banks will need to implement holistic, sophisticated data and risk analysis technology following last month's bank runs, experts say.

In addition, delinquencies rose after receding the previous month, according to the latest report from Black Knight.

Institutions can borrow against par-valued securities that they would otherwise have to sell at a loss when there's a run on deposits, and it could have effectiveness beyond its actual usage.

There were many red flags before the California bank failed last week. Now the questions are: How did federal and state regulators assess the risks, and what actions did they take in response?

Mortgage-backed securities aren't generally considered risky assets, but how SVB managed them contributed to its woes.