In December 2021, European Banking Authority published three consultation papers, including the guidelines on Interest Rate Risk in Banking Book (IRRBB) and Credit Spread Risk in The Banking Book (CSRBB), the regulatory technical standards (RTS) on the supervisory outlier test (SOT) and the RTS on the standardised approach (SA) and the simplified standardised approach (S-SA) for the economic value of equity (EVE) and the net interest income (NII). The 4-month-long consultation period finished on the 4th of April 2022. This article provides an overview of the first of the three consultation papers, the guidelines on CSRBB and discusses the methodology for the monitoring and assessment of CSRBB.

With the SA-CCR differing substantially from the prior non-internal methods, there is significant work to be done by institutions to comply with the new regulatory requirements while minimizing the EAD (and by extension RWA) impacts on their derivative portfolios. The main effects can be split into those of a more operational versus strategic nature. On the operational side, the main challenges and considerations relate to the implementation and streamlining of the SA-CCR calculations

The reforms will force banks to examine capital use throughout their whole operation and maybe revise their pricing and product offerings as a result. As a result, the new framework will impact company strategy and business strategies. The BCBS anticipates that this will result in a capital reallocation within the system. Larger banks will need to concentrate on capital floors, but smaller banks will need to carefully assess what infrastructure and technology changes are required to handle the greater amount and granularity of data required by the most advanced standardised techniques.

We intend to raise the awareness on how Data Science can be leveraged on in the context of insurance pricing and how to go from theory to practice, from scripting to deploying your model. This article is the first of a series of four articles on this topic. ​Understanding the risk factors and their impacts on the pricing is essential in risk assessment, particularly in a competitive market. In this process, generalised linear models combined with regularisation techniques can be useful. Moreover, GLMs help to understand what impacts your policy's pure premium so the product managers and brokers can effortlessly understand how the model works.

On January 24th 2022, the EBA published its final draft implementing technical standards on Pillar 3 disclosures for Environmental, Social and Governance (ESG) risks. This article aims to summarise, contextualise, and critically assess the disclosures' essential aspects. It situates the disclosures within the larger spectrum of comparable disclosures of environmentally sustainable economic activities presented by other governing bodies in the EU. It discusses the different templates included and the timeline provided by the EBA for completing each set of disclosures. It offers preliminary methodological recommendations on key aspects of the disclosures based on Finalyse's internal requirements assessment. Eventually, it provides some general concluding remarks on Banks' challenges related to the disclosure of ESG risks.