Banks
Banks curb frequency of GRC vendor reviews
Data shows drop in plans to pitch or switch vendors, amid tighter third-party rules – but TPRM bucks the trend
In more than 90% of banks, second line tackles cyber risk
But some regulators would still like to see more 2 LoD risk staffing for infosec and IT disruption
Public interest assessment in resolution of small and medium-sized banks in the European Union
This paper studies key determinants of public interest assessments in EU bank resolution with a focus on three factors: systemic risk, bank size and bank localness.
Almost all banks mandate cyber security training
And unlike other risks, information security coaching moves the internal confidence dial
Regional banks favour scenario analysis over op risk modelling
Domestic and smaller regional players favour scenarios to gauge tail exposure; G-Sibs stick to modelling, for now
Cross-border lending to NBFIs hits record $678bn in Q1
Half of international bank credit flows to shadow banks, despite growing regulatory concerns
Elizabeth McCaul on supervision, new macrodynamics and investing in suptech
Former ECB Supervisory Board member speaks about the Covid-19 and Credit Suisse shocks, regulation debates, the rise of non-banks and what makes tech projects succeed
Santander loan portfolio hardest hit in EBA stress test
Simulated credit losses among 64 lenders top €394bn, up 14% from previous exercise
More than one-quarter of banks overhaul third-party KRIs
Op Risk Benchmarking data shows more flux – and less confidence – in indicators tracking vendors versus other risks
Generative AI brings testing times for modellers
Flagstar’s lead model validator offers some tips for safely integrating LLMs into risk models
LBBW breaches leverage floor in EBA stress test
Adverse scenario would erode €229bn in CET1 capital across 64 banks
More than half of banks manage change as an operational risk
Others are moving to incorporate it into risk taxonomies, although some now treat it as a cause, citing supervisory guidance
Basel III overhaul doubles Nomura’s credit risk
Surge reflects asset migration and new equity treatment
Glass houses: US agencies urged to shore up cyber defences
Email hack at OCC raises concerns over more widespread frailty at regulators
Systemic importance identification and risk supervision of banks: evidence from China
Investigating systemic risk, the authors build an interbank network based on tail dependence and suggest typical network centrality measures can suffer from redundancy issues.
Libor appeals leave future misconduct cases Hayes-y
UK authorities must develop a more effective framework for punishing bad bankers
Do bank complexities increase the risks? Insights from four Asian countries
Focussing on China, Malaysia, Pakistan and Qatar, the authors investigate how bank complexity impacts bank risk.
The role of banks’ digital transformation in operational risk management: evidence from China
The authors investigate the impact of banks' digital transformation on operational risk, finding that in most cases, this reduces operational risk,
From fragmented signals to confident credit decisions
Credit Benchmark and Oliver Wyman explore how aggregated bank data and advanced analytics are helping risk teams make confident, forward-looking credit decisions
People: Rustad to head SwapClear, Kimmel exits Citadel, and more
Latest job changes across the industry
Bank ALM system of the year: Prometeia
Reflecting the strength of Prometeia’s ALM platform and the firm’s alignment with the needs of modern risk and performance management
US banks’ FX notionals hit record $66trn on forwards frenzy
JP Morgan leads record derivatives surge amid Q1 market volatility
Deutsche Bank casts a cautious eye towards agentic AI
Risk Live: “An AI worker is something that is really buildable,” says innovation and AI head
Should the Fed mandate collateral pre-positioning at the discount window?
Supervisor wants banks to be ready to access central bank facilities, but formalising pre-positioning has some drawbacks