Since the financial crisis, banking regulators have started to use stress testing as a way to examine how banks will manage under adverse conditions. The idea is to ensure that banks hold enough capital to survive economic shocks. The European Banking Authority published its draft stress-testing methodology for 2018 back
Tag: stress test
Like stress testing, model risk management is one of the current ‘hot topics’ in banking. Discussed extensively at a recent risk executive roundtable in Amsterdam, it is clear that the issue is exercising minds to a considerable degree. What’s more, it is also only likely to become more important in
Another year’s over, a new one’s just begun. And it’s time to answer that most crucial of questions: ‘What does 2018 hold in-store for EMEA banking?’. Unless I’m missing something obvious, all the signs point to the coming 12 months being characterised by the usual ‘evolution not revolution’, and anybody
Since the financial crisis, risk management in banks has grown in importance, and therefore so has the need for digitization. Regulations have called for stronger risk management of business processes. The first direct requirements for capital requirements and liquidity management were introduced in Basel III, but this has continued since.
Stress testing is one of the hot topics of the moment for risk management in banking. A ‘stress test’ is an analysis designed to check whether the bank is holding enough capital to be able to manage a rapid downturn. It is, basically, a way to test the resilience of