International

Credit Risk

IMF Offers Guidance on Offsetting Economic Impact of Covid-19

By Editors | 17/03/2020

Banks should be encouraged to undertake prudent renegotiation of loan terms for stressed borrowers, but loan classification and provisioning rules should not be eased.

Market Risk

DTCC Offers Guidance on FRTB’s Risk Factor Eligibility Test

By Editors | 17/03/2020

Access to robust, high-quality price observation data is key to compliance with FRTB requirements to test the eligibility of the risk factors used in internal models.

AI Risk & Governance

Wolters Kluwer, PwC Complete PoC Using AI in Regulatory Reporting

By Editors | 15/03/2020

After minutes of training, algorithms were able to use 250,000 records of previously unseen raw data to predict regulatory reporting output with degrees of accuracy exceeding 99%.

AI Risk & Governance

AI’s ‘Black Box’ Issues Can Be Addressed Through Regulation

By Editors | 12/03/2020

A new paper develops a regulatory roadmap for addressing the increasing role of AI in finance, focusing on human involvement to deal with ‘black box’ issues.

Conduct, Culture & Accountability

Major Banks’ Fee-based Revenue at Risk – Study

By Editors | 11/03/2020

Increased regulatory pressure and growing competition from new players could cost incumbent banks 5% of their revenue over the next 3-5 years, says a new report from Accenture.

Anti-Money Laundering

Terrorist Financing Threat Requires More Effective Response

By Editors | 10/03/2020

The current approach to terrorist financing is one-dimensional, overly simplistic and outdated, says a new paper from RUSI’s Centre for Financial Crime and Security Studies.

Operational Risk

25 Years Since Barings Collapse: What Has Changed?

By Peter Guy | 09/03/2020

Peter Guy explores whether regulation, compliance and financial technology have improved risk management in the 25 years since Barings Bank’s spectacular crash.

KYC & CDD

FATF Issues Guidance Paper on Digital Identity Systems

By Editors | 07/03/2020

The guidance recommends a risk-based approach which relies on a set of assurance frameworks and technical standards for digital ID systems.

Sustainable Finance

IIF Calls for Global Alignment of Sustainability Efforts

By Editors | 06/03/2020

The IIF paper says fragmentation around climate risk assessment has emerged in the areas of prudential regulation and supervision, market and conduct regulation, taxonomy and disclosure.