Deposit Concentration Risk There is a post-mortem: if it had not been for bank runs, the banks that recently have been taken over by the regulators would have been able to survive, despite the shaky balance sheets showing assets rapidly losing values. There is no doubt bank runs are a difficult problem to overcome. In the recent cases, once theRead more

In March 2022, the Australian Prudential Regulation Authority (APRA) published a discussion paper outlining a five-year plan to transform its data collection approach for the financial industry, with a focus on granular data collections. In this discussion paper APRA provided a timeline for the proposed changes and explained the rationale behind them. APRA then engaged with industry stakeholders through roundtablesRead more

Cloud Computing continues its growth Software-as-a-Service (SaaS) has enjoyed increased popularity across all sectors in recent years, and shows no sign of slowing.  Gartner predicts that global public cloud spending on SaaS will jump to $208,080 million in 2023, up 18% from the previous year. In the Banking sector the use of cloud providers, whilst initially treated with some scepticism,

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What is Granular Data Reporting (GDR)? The regulatory compliance space is undergoing a significant transformation globally, and data granularity is at the forefront of this transformation. Due to the new granular reporting requirements, financial institutions will be expected to submit transactional/record-level data as granular and disaggregated data sets to regulators, in addition to current aggregated template-based reporting requirements. These dataRead more

A few weeks ago the PRA (Prudential Regulation Authority) announced a change to the capital rules for consultation (PRA CP 06/23).  At present, non-performing exposures are deducted from Capital, subject to various factors and adjustments.  The proposed change removes this rule entirely from Q4 this year.  Non-performing exposures (NPE) no longer get their own line in the Capital+ and CA1

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The Basel Committee on Banking Supervision (“BCBS”) issued on 16th December 22 its final standard on the Prudential treatment of crypto asset exposures, following two rounds of public consultation.   The standard has been developed to provide a global baseline framework for banks’ crypto asset exposures that promotes responsible innovation while preserving financial stability. To determine the prudential classifications, crypto

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In the “Supervision and Regulation Report,” published in November 2022, (the “Report”), the Federal Reserve noted that banks could be adversely affected by stress in the commercial real estate (“CRE”) sector due to high concentration.  The outlook for some CRE properties, the Report indicates, is being affected by changing economic conditions and greater reliance on remote work. In this blog,Read more

Here at VERMEG, we’ve been delivering innovative software solutions for over 20 years, and we go out of our way to share our expertise with the rest of the industry. We host a regular podcast called FinTalk, where we share the latest news in FinTech and RegTech across banking, insurance, and finance. I recently had the pleasure of chatting to

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To better appreciate the challenges of the Fund Industry, we need to acknowledge its several market actors with their different regulatory engagements towards the Fund & Market regulators. These actors include the Manager, the Administrator, the Regulator/Auto Regulator, the Distributor, the Auditor, the Asset Controller, the Liabilities Controller, the Risk Agent, the Autonomous Agent, the Consultant, the Lawyer, the ClearingRead more