The main aim of this paper is to show the potential benefits for the Securitisation process, both in terms of the setup of operations and in the entire product life cycle, derived from the adoption of the Blockchain Technology.
London Interbank Offered Rate (LIBOR) is the world’s most widely used benchmark for short-term interest rates. It is a reference rate for some $200 to $350 trillion in mortgages, consumer loans, derivatives and other financial instruments, which elevates it to the status of a gauge for the health of the banking system. As of the end-2021, it will cease to exist. This development is both a challenge and an opportunity for the financial industry.
In recent years, financial institutions have faced a significant increase in the volume and complexity of regulatory reporting requirements imposed by the supervisory authorities.
In this context, institutions are required to submit hundreds of thousands of data points in different templates and formats to various supervisors (European Authorities, national authorities, or both). It is worth noting that the reporting deadlines and frequencies at which data points must be reported to the relevant supervisory authorities vary greatly across national jurisdictions.
“School is back in session!” and as pupils go back to study their core subjects, the bankers will have to do their own studying of the 2020 EBA Guidelines on Loan Origination and Monitoring. These guidelines bring a number of far-reaching requirements to the age-old process of credit granting.
The benchmarking exercise is a key supervisory tool to monitor and enhance the quality of the internal models. The EBA 2021 benchmark exercise is aiming to take on a new hurdle by demystifying market approaches implemented to calculate expected credit loss under the IFRS 9 requirements.
The European Central Bank (ECB) has mandated a new reporting exercise in light of the COVID-19 crisis in an effort to ensure the timely and consistent monitoring of the risks ignited by the outbreak and to widen the scope beyond the SREP STEs, FINREP and COREP , through the inclusion of credit moratoria and state guarantees figures. The reporting shall be submitted to National Competent Authorities on a monthly basis until at least December 2020, and raises several implementation challenges for Significant Institutions (SIs) on the organizational and operational levels (including capacity and data aggregation issues).
Since the latest EBA guidelines were published in 2019, financial institutions have rushed to implement measures to make sure they are in full control of outsourced activities. But COVID-19 put the spotlight on weaknesses of traditional outsourcing, opening doors to more resilient cloud-based solutions.
In early 2019, a survey of financial advisers had already revealed serious misgivings over the possible mis-selling of products marketed to investors as ‘ESG friendly’. 97 of every 100 financial advisors in the United Kingdom (UK) had declared themselves as either “very” or “fairly” concerned about the potential for allegations of mis-selling ESG investments, according to market research firm Cicero.
While the move to the cloud was already well underway in financial services, the outbreak of the covid-19 pandemic has accelerated the need for virtual organising, and specifically
slipstream cloud-based working. But while moving to the cloud can unlock significant benefits, it also comes with
One dramatic impact of the coronavirus (COVID-19) pandemic has been the rapid acceleration in the digital transformation of organisations as much of the workforce has been suddenly forced to “WFH”. The ability of organisations to close physical offices and continue operating rests largely on various kinds of cloud services providing distributed, on-demand availability of data storage and computing.
Rob Konowalchuk of Avantage Reply discusses IFRS 17 and the digital challenges that will come from its implementation including Data Governance, and how to move beyond mere compliance towards more strategic initiatives.
The financial services industry has been, and still is, in a process of transformation. The
Reply Financial Services Outlook 2019 gives a 360° overview from Risk Management to Digital Transformation.
Does “equivalence” solve the Brexit woes of the financial services industry? Oscar McCarthy curbs the enthusiasm that follows the latest news about a possible deal for the financial sector.
The Basel Committee on Banking Supervision bowed to the inevitable on December 7, announcing a three-year postponement to the implementation of the FRTB, which had been due for January 2019. Lawmakers in the European Union had been thinking about delaying beyond that date, and the US transposition process has not even started. (Samuel Wilkes, Risk.Net)
Rapidly developing technological advances combined with new and innovative commercial uses of personal data and diverse differences in data protection standards across the European Union have served as the catalyst behind the shift from the Data Protection Directive (95/46/EC) to the General Data Protection Regulation (EU 2016/679 or ‘GDPR’). GDPR is designed to give citizens more control over their personal data.
In this article, Risk.Net gives an overview of the current trends in the finance and risk university programmes and how practitioners such as Avantage Reply actively collaborate to students' development.
In the article, Ram Ananth, Senior Manager at Avantage Reply was interviewed on the interpretation of European rules for hard-to-model risks under new trading book capital rules
"The title of one of the Basel Committee on Banking Supervision’s (BCBS) consultative documents pretty much sums up its attitude towards internal models as the cost of capital for using derivatives and certain asset classes continues to ratchet-up". Sergio Gianni and Dean Mitchell, Partners with Avantage Reply, answer the questions from the Global Risk Regulator.
Although the Basel Committee has sought to pare back the capital impact of the fundamental review of the trading book,specific asset classes could suffer.
Avantage Reply was interviewed by the Global Risk Regulator.
Risk information technology has become a key cog in 21st century banking, regardless of geographic location or institutional size. The pressures on banks' risk it teams are tremendous as they deal with fastchanging regulatory and business demands. It is critical that financial instituitions have the necessary risk infrastucture in place to accommodate their business strategy.
Fears of Pillar 1 capital charge; Rules may hit earnings and concentrate risk. Bernard Colla, Senior Manager at Avantage Reply, shared his point of view with Euromoney.