Subject to increasing supervisory requirements, the client was looking to strengthen its internal processes and comply with the annual SSM SREP.
Avantage Reply was engaged to help the set up a new capital management governance and conduct a range of dedicated work to strengthen the linkage between the BMA and the ICAAP.
The client is one of the largest banking groups in France, active in retail banking and insurance in France, as well as an international business focused on asset management, corporate & investment banking and payments.
Avantage Reply was asked by this client to provide subject matter expert and project steering support on the following themes relating to capital management, economic methodologies for the ICAAP process and regulatory requirements:
To meet the client’s expectations, Avantage Reply has deployed an experienced team with strong expertise composed of a senior manager and two consultants. The approach has consisted of providing elements of best practices of other large GSIB, conducting quantitates studies, steering several workshops with key Risk and Finance stakeholders and project governance.
The Avantage Reply team used the outcomes of the different exchanges to capture the visions of senior stakeholders and to produce and propose appropriate solutions to meet the needs of both the client and the regulator.
The key deliverables were:
Most of the ECB's recommendations have been addressed, including the creation of capital governance bodies, and the economic re-evaluation of Pillar 2 risks. Avantage Reply continues to assist the client in piloting its internal capital adequacy assessment processes.