Takeaways for Bank Boards: Impacts of SVB and Signature Bank Receiverships on Board Governance

BCLP is closely monitoring the aftermath of the banking sector closures and their respective impacts on our clients. The situation is fluid and fast-moving — with an eye towards the future and potential market disruption to follow, a team of BCLP's Finance Transactions partners lead a discussion to better prepare for developments stemming from the failure of these institutions. In this discussion, we will cover:

• Then vs. Now – comparing drivers of bank stress in the 2008 recession versus current issues

• Regulatory reactions: what we’re hearing now and what to expect in the next exam cycle

• Liquidity reporting

• Stress testing liquidity – impact of HTM securities liquidation

• New thinking about concentration risk

• ALCO committee focus

• Being proactive: questions to ask bank management

• FDIC's actions in the SVB BK: considerations for BHCs

• What does this change for directors and prospective directors?