Covid-19 and Bank Liquidity

By: Sharon J. Lorman
Matthew P. Prosseda
Richard B. Trauger, Jr.

Guest: Brian Velligan, Managing Partner, Velligan-Blaxall Consultants, LLC

Podcast Show Notes:

Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking news that happened this month. TMIB will be available on the last Wednesday of every month here, and on Apple and Droid podcast apps for your listening enjoyment. Join us on your commute, at your desk or at home.

Topic: Covid-19 and Bank Liquidity
Insights from Brian Velligan, Managing Partner, Velligan-Blaxall Consultants,

What will be the impact of the pandemic on bank liquidity? Given the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), what has been the effect so far on bank deposit levels? Do we expect to see a flight to safety and deposit inflows as in past downturns? Should we be treating these deposits as “hot money”? On the asset side of the balance sheet, is it a matter of time before we see credit deterioration and a rise in delinquencies and non-performing loans? And what will happen to asset durations especially in light of refinance requests? Brian Velligan, Managing Partner of Velligan-Blaxall Consultants, is our guest this month to share his insights on the effect of the pandemic on bank liquidity.

Brian Velligan Biography

Brian Velligan is a co-founder and Managing Partner of VBC. Brian leads the Model Risk Management team, provides senior review and strategic consulting in Asset Liability Management, oversees product/service development and manages the day to day operations of VBC. He has spoken on various risk-related topics with numerous bank & credit union boards, risk committees and at local, regional and national conferences. He has also authored several articles for financial industry trade publications and trained federal and state examiners on the topic of model validation.

Prior to founding VBC, Brian spent over seven years with Janney Montgomery Scott, LLC, a national investment firm, as corporate Vice President and Branch Manager of their Institutional Fixed Income sales office specializing in financial institutions clients. In addition to overseeing the daily operations of the office, he provided risk modeling and consulting for several community and regional institutions ranging from de novos to multi-billion-dollar asset sized institutions. Earlier, Brian worked for Eastern Savings Bank as the Financial Systems Coordinator, Planning and Budgeting. He also has extensive systems experience including applications in cost accounting, segment profitability reporting and IRR measurement.

Brian received his M.B.A. from Eastern University in St. Davids, PA. He is a member of the Financial Managers Society, BALM Editorial Board and the Global Association of Risk Professionals.

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Watch for episode 53 of This Month in Banking to be released on Wednesday, May 27, 2020 and a new episode on the last Wednesday of every month.

Thank you for listening!

Relevant links:
Velligan-Blaxall Consultants, LLC

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