As you well know, there is a lot of uncertainty in banking. From interest rates to regulation, things can change quickly. Banks that respond quickly to these changes may be better positioned to take advantage of economic shifts as they happen. Promontory’s services can help banks increase their balance sheet flexibility by providing tools to support banks in the management of their asset portfolios and funding mix.
Asset Portfolio Flexibility
Reduce asset concentrations and free up credit capacity
Through Bank Assetpoint, your bank can respond to changing portfolio needs by marketing its assets to a large, nationwide audience of potential buyers, thereby freeing up capital to support new lending.
Bridge CRA lending shortfalls by acquiring qualifying loans
Through Bank Assetpoint, your bank can identify and connect with lenders who could help your bank to acquire loans that meet Community Reinvestment Act requirements.
Deposit & Funding Flexibility
Maintain balance sheet flexibility with your bank’s large-dollar deposits
Using ICS and/or CDARS, your bank can sell excess deposits for fee income during times of high liquidity to banks that want to purchase wholesale funding. And when your bank needs deposits to fund lending, it can retain the full amount of ICS and CDARS deposits it receives. Either way, the customer relationship remains with your bank.
Quickly add cost-effective funding to support new lending opportunities
Using ICS and/or CDARS, your bank can respond to new lending opportunities or funding shortfalls by acquiring costeffective funding from other banks – financial institutions within Promontory’s network of banks – on a weekly basis.
With ICS and CDARS, your bank can acquire fixed- or floating-rate wholesale funding in a range of durations and amounts — from as little as $1 million to a billion or more dollars. No collateralization or stock purchases are required.