Third-Country Branches under CRD VI
Executive Summary The Capital Requirements Directive VI (CRD VI) introduces, for the first time, a harmonised EU-wide minimum prudential framework for third-country branches (TCBs), i.e. EU branches of banks headquartered outside the European Union. The regulatory core of this framework lies not in the Capital Requirements Regulation III (CRR III), but in the new CRD […]
Optimising Model Risk Management (MRM)
1. Introduction All banks are now dependent on models, making model risk one of the fastest-growing risks facing the banking industry today. As financial institutions rely more on predictive analytics to guide critical decisions, managing model risk effectively has never been more crucial. Model Risk Management (MRM) helps manage operational, reputational, and regulatory risks by […]
The Big eBook of Sustainability Reporting Frameworks
1. Introduction In today’s business environment, sustainability reporting has become a critical component for organisations aiming to demonstrate their commitment to environmental, social, and governance (ESG) principles. A diverse range of stakeholders, including investors, customers, regulators, and non-governmental organisations (NGOs), increasingly demand transparency and accountability. Investors seek detailed ESG information to make informed decisions and […]
Model-based Financial Regulation
1. Introduction In this article, we will delve into the influence of model-based financial regulations on the shift towards achieving net-zero carbon emissions. We will also examine its advantages, constraints, and hurdles in shaping regulations. Additionally, we will identify key stakeholders capable of driving a sustained impact in this transition. As the world grapples with […]
Stress Testing Against Climate Risk – A key Emerging Exercise for Banks
Climate Risk Stress Testing Background Climate change is one of the most complex challenges that society faces today. The continued and growing emissions of greenhouse gases since the industrial revolution have led to increased GDP, but at the price of increasing temperatures creating risks to life, ecosystems, and economies. There is increasing consensus that risks […]
ON THE STATE OF CRYPTO ASSET REGULATION IN THE EU
Crypto Asset Regulation The Basel Committee’s public consultation on the prudential treatment of banks’ crypto asset exposures builds on the proposals in the first consultation issued in June 2021. Unbacked crypto assets and stable coins with ineffective stabilization mechanisms continue to be subject to a conservative prudential treatment, with a new limit proposed on gross […]
CRR 3 – Changes and Impact on Exposure Class “Real-Estate”
More granularity for a complex market The Economist recently reported that Real Estate is the largest asset class in the world, making up 68% of the world’s non-financial assets in 2020.[1] It naturally follows then that a large portion of European banks’ lending is dedicated to real estate. This is the latest asset class to […]
Explore a 10-year arc of market leaders across SA’s Banking Sector
“In God we trust, all others must bring Data. “ W. Edwards Deming, statistician Aspect Advisory uses leading edge technologies to surface interactive, customisable, dynamic, and strategy relevant information from big data into intuitive user-friendly cloud based platforms – giving Executives real time agility at their fingertips, enabling them to distil market trends […]
The COVID-19 Pandemic: did companies prepare for this?
As with every individual, companies too are exposed to risks. Therefore, once a year large companies carry out a risk inventory assessment, answering a simple question: What can go wrong? The primary risk of non-financial corporates is business risk, i.e. the risk that they can’t sell as many products/ services as they wanted and/ or […]