Starting a Swap Program

Interest Rate Swap Program Initiation, Development and More

B&F Capital Markets specializes in building interest rate swap programs. Regional and community banks are attracted to swap programs as they:

• Enable the bank to provide long-term fixed rates
• Generate substantial fee income
• Make the bank more competitive with larger banks
• Help the bank manage its asset/liability position

Swap programs help banks to win more loan business and generate significant fee income.

Start-Up Tasks

Building a swap program is a complex process. It involves a substantial investment of capital and people, with no guarantee that it will be done well or produce results. A successful product launch requires the support of both internal and external constituencies and establishment of appropriate regulatory, accounting, and operational policies and procedures.

B&F Capital Markets’ principals have successfully navigated this process with over 70 banks. Before the first swap is done, B&F Capital Markets works with its client banks to:

• Develop standard documentation
• Write policies and procedures to meet regulatory standards
• Interface swap activities with loan operations
• Train lending, credit and operational personnel
• Create management reports