Batch processing is approaching its sunset, step into the world of real-time.
IRRBB management ultimately ensuring banks remain profitable and stable institutions while playing a key role in the economic recovery.
Forget business as usual for the time being, black swans do surface occasionally and COVID-19 is one of them.
In its effort to reduce the variability in modelled Risk Weighted Assets (RWA), the BCBS has included a Standardised Approach Floor to IRB RWA results in the Basel IV framework.
The current co-existence of the international Accounting framework for loan loss provisioning (IFRS 9) and the Regulatory framework (Basel 4) creates overhead due to inconsistencies.
Some jurisdictions, like Hong Kong, are going full steam ahead with the adoption of FRTB, while others require more time to implement.
Surprisingly, a revision of the Risk Weighting of Sovereign Debt was excluded from the ‘Finalization Package’, even after the lessons learned from the EU Sovereign Debt Crisis.