A fresh take on risk and valuation
The banking regulatory environment is changing quickly, with an average of two regulatory releases every day. Whilst not all releases require immediate action, many do. Banks need to commit a substantial effort into tracking, cataloguing, and analysing the newly released requirements and their impact on their business, risk management and asset allocation.
Finalyse addresses this need in a targeted way that informs the bank on all relevant regulations while removing noise. This service is conducted manually so that we are able to analyse the impact from the client’s perspective. It also allows us to be highly responsive to the newly emerging regulatory topics.
Several Regtechs offer a service where the filtering algorithm is applied. However, they do not provide an analysis of the impact of the new regulation. They also don’t account for the newly emerging topics that are relevant to the client, but are too novel to be a part of the predefined range.
Repository of relevant information
A repository of banking-related regulatory pieces filterable by Topic, Base Regulation, Regulatory Authority, Type, and date. The repository contains a short description of the matters covered in the regulatory release and a hyperlink to the document.
Notification when a new regulation is released
The notifications are dispatched weekly/monthly, covering the relevant topics of that period. The content can be customised for different departments.
Analysis of the impact of the recent Regulation
An overview of the regulatory releases that occured during the last quarter with a high-level assessment of their general impact.
End-of-year forward-looking meeting on anticipated regulation.
An additional meeting near the end of the year, after ESMA, EBA and Commission release their work programmes.
Deep dives into the specific topics
A detailed and technical information on selected topic as well as comprehensive analysis of its impacts.
Answering Regulatory Queries
An expert opinion on regulatory queries on the topics within the scope of this regulatory service. Normally we answer the request on the same day.
The article walks the reader through the different modules of the 2022 ECB Climate Stress Test. While we still find ourselves at the dawn of introducing climate risk into the existing risk management frameworks, the ECB continues to pave the way for financial institutions. In the methodology paper released in October 2021, the regulator has showcased their expectations for the upcoming bottom-up stress test. By elegantly side-stepping the intricacies of advanced climate modelling, financial institutions are enabled to start their climate stress testing journey while laying strong foundations for more advanced approaches in future exercises.
ReadOn the 27th of October 2021 the European Commission has released its proposal of a new banking package, that (among other things) implements the first pillar of Basel IV into the banking regulation. This package introduces a big change to the European Banking industry. The combination of changes to the credit risk (which is the main risk driver in the EU), and output floor will be particularly strongly felt across the EU.The new requirements are computationally difficult and institutionally challenging. They require variety of tools and data all of which will be costly. The current release is a Commission proposal only and still needs to go through the council and the parliament before its release in the official Journal of the EU. However, it is not expected to undergo very many additional changes and its adoption should be smooth.
Read