Excess deposit bonds – Flexible form of collateral

first_imgAs the economy continues to expand, financial institutions are again in the mode of seeking funding sources to support loan growth.   Instead of cannibalizing their local market, they look to institutional/wholesale depositors for the additional funding. Institutional deposits allow financial institutions the flexibility to expand or contract deposit levels without disrupting their core market.  Institutional depositors are more structured in nature and are often times bound by investment policies or state statutes requiring a rating on the financial institution and/or collateralization on investments; both of which create a barrier of entry and limitations on available funding.  There are multiple forms of collateralization, but each has benefits and limitations depending on the type of depositor and the financial institution’s ability to collateralize. With the pledging of collateral, a financial institution encumbers their highly liquid investments, which has a negative impact on their Liquidity Coverage Ratio.  In addition, there is usually a haircut associated with pledging and ongoing operational maintenance. When issuing a Federal Home Loan Letter of Credit, a financial institution reduces their ability to access the Federal Home Loan Banks (“FHLB”) directly for advances. Operationally, FHLB letters of credit are straightforward.  The Letter of Credit is a direct obligation of the FHLB and does not fluctuate in market value. Reciprocal deposits also do not require the encumbering of securities or fluctuate in market value, but have rigid terms in settlement.Excess Deposit Bonds (“EDB”) have resurfaced as a feasible source of collateralization.  An EDB is a guarantee from an insurance provider that a financial institution will perform its obligation to the depositor. Should the financial institution default in its obligation to the depositor, the EDB can be “drawn” upon and the insurance provider will make the depositor whole in principal and interest through default.The reappearance of EDBs will provide bankers with an additional securitization option when participating in deposits that require collateral. Furthermore, this type of securitization can be utilized with any type of depositor, unlike Letters of Credit or pledged securities which are limited to specific types of depositors. However, just like current securitization options, it is important to be cognizant of all tangible and intangible costs. Insurance providers issuing EDBs will charge a premium on the deposit being placed. The cost may vary depending on a number of factors which include program size, credit quality, duration, etc. It is important to ask your insurance broker or the underwriter about the cost associated with your bond and various factors that may influence it. Due to the impacts of the financial crisis, EDB providers are mitigating risk through shorter durations and smaller program sizes. EDBs are a welcome re-addition to the options of securitization. This tool provides financial institutions with an opportunity to attract deposits that they typically wouldn’t due to securitization requirements. Furthermore, if used effectively, EDBs can provide regulatory relief. On the surface, EDBs seem more expensive than other forms of securitization, but when factoring in operational cost, functionality and regulatory diversification, they become a competitive alternative. Co-Authored by Todd A. Terrazas 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,James Lutter D. James (Jim) Lutter is the Senior Vice President of Trading and Operations at PMA Financial Network and PMA Securities where he oversees PMA Funding, a service of both companies … Web: pmafunding.com Detailslast_img read more

Governor Wolf Introduces “Ready to Start” Task Force to Focus on Needs of Youngest Pennsylvanians

first_imgGovernor Wolf Introduces “Ready to Start” Task Force to Focus on Needs of Youngest Pennsylvanians September 27, 2018 SHARE Email Facebook Twittercenter_img Education,  Human Services,  Press Release Harrisburg, PA – Governor Tom Wolf today announced the creation of a “Ready to Start” task force focused on informing the strategy to address health, human services, and education policy for infants and toddlers ages zero to three.“The Ready to Start Task Force complements my administration’s robust agenda for all children, which includes access to high-quality pre-K through 12 education and access to health and human services programs and supports,” Governor Wolf said. “Ready to Start rounds out this agenda with a focus on our youngest Pennsylvanians.“The environment in which babies live and learn in their first three years has an enormous impact on their cognitive, social, and emotional development. The task force’s goal is to identify programs and policies to help infants and children age zero to three get a strong, focused beginning toward a healthy, happy, fulfilling life here in the commonwealth.”The Ready to Start Task Force will identify key themes and options informed by stakeholder engagement and analysis of current programming to inform future policy recommendations and an implementation plan with emphasis on three guiding principles:Improving health outcomes of infants, toddlers, and their families;Strengthening the home environment for infants, toddlers, and their families; andPreparing infants and toddlers for future school success.Following the creation and successful outcomes of Gov. Wolf’s Middle Class and School Safety task forces, which used a similar approach to engagement through regional listening sessions, the Ready to Start Task Force will host six sessions across Pennsylvania in October and November.The intention of the listening sessions led by professionals with a focus on early learning and child development is to gather information and insight and to look at current and possible strategies to help the youngest Pennsylvanians.The governor appointed six co-chairs to lead the Ready to Start Task Force: Janet Haas, M.D., Chair of the William Penn Foundation Board of Directors, representing philanthropic and business entities; Jodi Askins, Director of PennAEYC, representing advocates and providers; David Rubin, MD, MSCE, Director of Population Health Innovation and PolicyLab at Children’s Hospital of Philadelphia, representing health and research; Maureen Cronin, Executive Director of The Arc of Pennsylvania, representing children with disabilities and their families; Dr. Valerie Kinloch, Dean of the University of Pittsburgh School of Education, representing child development and education; and Nyanda Finley De Santos, parent and Director of Family and Community Engagement at Community Services for Children’s Head Start Program, representing parents and community partners.“Focusing on children’s development in their earliest years is one of the most powerful ways to improve the course of their lives,” said Dr. Janet Haas. “Brain development begins before birth, and children need high-quality care and positive engagement with adults to foster healthy development. The multi-year agenda this task force will develop is critical for expanding supports that provide all children a strong start to enter school healthy and ready to learn.”“PennAEYC is excited to support the governor in this effort focusing on infants and toddlers,” Jodi Askins said. “The earliest years are all about relationships. Infants and toddlers crave and develop attachments to the special people in their lives. If we can help our communities set an agenda and strategy to support those special people with thoughtful policies that strengthen systems, we can make a lasting impact for Pennsylvania’s youngest citizens”“We have strong research showing that the support families receive during early childhood can lay the foundation for a child’s future health outcomes and success in adulthood,” said Dr. David Rubin. “I’m proud that our state is prioritizing developing an action plan to improve the health of Pennsylvania’s youngest residents, and I look forward to working with my fellow co-chairs to see it through.”“The birth to three period, with the fastest rate of brain development, is an especially critical time of development for infants and toddlers with developmental delays and disabilities,” Maureen Cronin said. “The Arc of Pennsylvania applauds the governor for recognizing how much early social emotional development and physical health provide a foundation that can change a child’s developmental trajectory and improve outcomes for children, families, and communities.”“I am excited to participate in this task force and to collaborate with others to move forward impactful work that addresses education, health, and human services in the commonwealth,” Dr. Valerie Kinloch said. “It will be critically important for this work to result in improved health outcomes, increased educational opportunities, and more networked forms of community engagement for our infants, toddlers, and families.”“Infants and toddlers are among the most vulnerable members of our society, yet the resources available to support parents and caregivers of young children are often inadequate to ensure their needs are properly met,” Nyanda Finley de Santos said. “Pennsylvania’s Ready to Start Task Force provides an opportunity for the voices of key stakeholders, moms, dads, early care providers, and other members of the community, to be heard and to inform policy that will directly impact our young children and ensure future outcomes that are comprehensive, equitable, and of the highest quality – outcomes all families in Pennsylvania deserve.”Representing the Wolf Administration on the commission are Secretary of Human Services Teresa Miller, Secretary of Health Dr. Rachel Levine, Deputy Secretary of the Office of Child Development and Early Learning Suzann Morris, and Deputy Secretary for Health Promotion and Disease Prevention Dr. Loren Robinson.The Ready to Start Task Force builds on the significant progress that has been made under Governor Wolf’s leadership to advance education, health care, and human services programs that support Pennsylvania’s children, families, and communities.Since 2015, the Wolf Administration has established numerous policy initiatives to improve the lives of Pennsylvania’s children regardless of where they live or their family circumstances:Human Services to Create a Healthy Home EnvironmentThis year, 15,000 children will receive home-visiting services and other evidence-based supports through Pennsylvania’s Community-Based Family Centers and Nurse-Family Partnership programs.Gov. Wolf’s 2018-19 budget included a $5.3 million increase for community-based family centers, including $4.5 million to provide home-visiting services for families affected by opioid use disorder, along with increased funding for home-visiting providers and Nurse-Family Partnership programs.These programs have a family-centered focus and strength-based approach that works with both the child and parent beginning as early as when a new baby is brought home from the hospital.Studies of various home-visiting programs have shown positive impacts on children’s cognitive development and behavior, higher grade point averages and achievement scores at age 9, and higher graduation rates from high school.Health Care from Day 1Research shows that supporting the well-being of children through nutrition and health care supports, positive caregiver relationships, and high-quality early learning opportunities in the first three years of life sets them up for lifelong success. And children who receive high-quality early learning and care perform better in school, graduate at higher rates, and earn more throughout their lives compared to their peers.Governor Wolf’s support and promotion of the Children’s Health Insurance Program (CHIP) helped increase enrollment to provide this vital service to more than 180,000 children in Pennsylvania. The program provides health insurance to uninsured children and teens up to age 19 who are not eligible for or enrolled in Medicaid. CHIP is available for families whose income is above 133 percent of the poverty level.High-Quality Early LearningOver the course of his tenure, the Governor has worked with the General Assembly to increase investments in public education at all levels by $1 billion, from early childhood to K-12 to postsecondary – including expanding state-funded preschool programs by $115 million.These investments and efforts have yielded significant outcomes for Pennsylvania’s children and families, including increasing the number of children able to attend pre-kindergarten by 60 percent, adding more than 9,600 slots in Pre-K Counts and an additional 1,300 in the Head Start Supplemental Assistance Program (HSSAP).Increased funding in the 2018-19 budget for early intervention (birth to age 3) will help serve 39,930 infants and toddlers and their families/caregivers across Pennsylvania.The 2018-19 budget also included $6.8 million in increased funds for child care services paired with $50 million in federal funding to serve 1,100 children on the child care waiting list.In August 2017, Pennsylvania revamped its Keystone STARS child care rating system designed to improve quality in child care and early learning offerings. The governor’s 2018-19 budget included $5 million for professional development for early care and education professionals and $2 million to pilot contracting with STAR 3 and STAR 4 programs in Pennsylvania’s Pre-K Counts program to serve infants and toddlers, improving access to and continued enrollment in high-quality early learning settings by weighting subsidies that help low-income families pay for child care toward higher-rated child care offerings.The Ready to Start Task Force will share findings and options with the governor in January 2019, including a review of existing programs and initiatives.last_img read more

Bribery allegation: Amokachi slams Obasi for raising alarm after Keshi’s death

first_img Promoted Content8 Things That Will Happen If An Asteroid Hits Earth10 Phones That Can Work For Weeks Without Recharging9 Facts You Should Know Before Getting A TattooWhich Country Is The Most Romantic In The World?7 Truly Incredible Facts About Black HolesWhat Happens When You Eat Eggs Every Single Day?Best & Worst Celebrity Endorsed Games Ever Made7 Theories About The Death Of Our Universe8 Ways Drones Will Automate Our Future12 Movies That Almost Ended Their Stars’ Careers7 Of The Wealthiest Universities In The WorldCouples Who Celebrated Their Union In A Unique, Unforgettable Way The forward was a regular for Schalke 04 in the 2013-14 season, making 15 appearances in the German Bundesliga, amid other dazzling displays. The striker, who starred for Nigeria in the 2010 World Cup was, however, left out of the Super Eagles squad for the global tournament in Brazil and revealed he was shut out of the team because he refused to ‘grease someone’s palm’. Amokachi, who was the right-hand man of former Super Eagles coach Keshi, neither denied the claims nor admitted it but slammed the forward for bringing up the case after the death of the manager in charge. “Why come forward with such now when the man in charge is no longer alive to answer it?” Amokachi told the Cable. “Even look at it, this happened in 2014 and six years after you are coming forward with such claims? Why wait until now? It doesn’t make sense to bring such an issue when the head is no longer alive to respond to you? “I am not saying such things don’t happen. Up until tomorrow, this thing does happen in African football but for us to have a change, when such happens, come forward with such. Be the sacrifice so as to prevent others from going through the experience. “It is not about one person, it’s a revolution, a change, that if we start, it will change a lot of things in our football. “This issue of bribe-taking or collecting in our football is not a one-way thing. Agents of players will come and meet a coach to offer money for their players to be taken. “It’s a two-way thing. Sometimes, players are the ones that will even go to the coach to say my agent said he will pay for me to be part of the team. “You will also see some administrators and coaches who have turned agents that will try to be influencing things from the side.” On his part, second assistant to Keshi, Houdonou claims Obasi did not merit a place in the squad given the array of stars available, although they could only manage to reach the second round of the tournament. “The question is, who could he have replaced among the strikers then?” Houdonou said. read also:Keshi took some ‘useless’ players to 2014 World Cup – Amokachi “He was invited like every other potential player that could make the World Cup then because the coaching crew wanted to take the best to Brazil then. “He failed to make the list because he could not displace anyone in the team.” Obasi, who has 26 caps for the Super Eagles, last played for the three-time African champions in 2011 against Argentina. FacebookTwitterWhatsAppEmail分享 Loading… Stephen Keshi’s assistant, Daniel Amokachi and Valere Houdonou have hit out at Chinedu Obasi after he claimed he was denied a spot in the 2014 World Cup because he allegedly refused to pay a bribe.last_img read more