RCSA - Mirror, Mirror, on the Wall 0 Comments | By

Mirror, Mirror, on the Wall A key element of any toolkit in Enterprise/Operational Risk is Risk Control Self-Assessment, or RCSA. And it happens to be the highly suboptimal, much misunderstood, most bureaucratic, and least productive one of them all, in its setup, execution and results. At its core, RCSA is about looking in the mirror … Continue reading “RCSA”

KYX : much of a muchness for what should not be very much (1) Regulations and Regulators: Many Regulators play in the AML & KYC and the OFAC & FATCA arena. The Bank Secrecy Act or BSA(formally The Currency and Foreign Transactions Reporting Act of 1970) was originally assumed to apply only to Banks.BSA exclusion … Continue reading “KYX”

Trading book and Banking book
Trading book and Banking book 0 Comments | By

Trading Book and Banking Book treatment in FRTB can be summarized in three lines as follows: Close the loop hole of Capital Arbitrage between the Trading book and the Banking book Calculate the Capital for the trading book and the banking book as if the banks are in Stressed Market Conditions Calculate Capital using the … Continue reading “Trading book and Banking book”

In June 2016, FASB unveiled a guidelines for the banks to capture the credit loss by taking into account the expected credit losses over the expected lifetime of the products, and not use the 40 year old “Incurred Loss Model. Background of the new Current Expected Credit Loss Model (“CECL”) In 2011, the FASB and … Continue reading “Overview of CECL and IFRS 9”

Does Banking still make its association with culture quite oxymoronic… and remain dumbly addicted to self-perpetuated disease, decay and doom … or is it now just some fringe elements that are so. Your guess is good. I have stopped trying to. Internal culture, risk management, regulatory compliance, dynamic oversight, anti-fraud programs, pro-customer spiel, hordes of … Continue reading “Is Banking Culture still that elusive?”