|By ACN Newswire||
|August 30, 2013 12:10 AM EDT||
"Regulators, particularly in the United States, are now looking beyond numbers and towards whether banks are running the right tests in a way that reflects material risks," says David Samuels, Managing Director of Promontory Financial Group in the summer issue of the firm's quarterly publication Sightlines.
Mr. Samuels, who is scheduled to visit the Greater China region in October 2013, identifies governance practices, modeling, the type of data used, and the process used for identifying material risks as some of the issues regulators are looking at.
New regulatory challenges also confront banks based in Mainland China and Hong Kong, where regulators are ordering more frequent stress tests to assess whether banks can cope with a sudden liquidity shortage or an abrupt outflow of money.
"Regulators in China view the recent credit crunch as a wakeup call showing that some banks may not be up to the task of coping with sudden changes in credit markets or liquidity shortages," said Frederic Lau, Managing Director of Promontory Financial Group China. "In Hong Kong, low interest rates and U.S. quantitative easing has attracted a lot of cheap capital and regulators want banks to be prepared for when the Fed turns off the tap."
The summer issue of Sightlines is available at www.promontory.com under the "News & Insights" tab. Articles include:
-- Bank stress testing moving beyond regulatory requirements
-- Systematic concerns raised in the U.S. Financial Stability Oversight Council's annual report
-- Principles for reforming financial benchmarks recently drafted by the International Organization of Securities Commissions (IOSCO)
-- Regulatory implications for financial companies outsourcing services to vendors or third parties
-- Upcoming consolidation among U.S. banks
-- Missing ingredients in risk management
-- The need for U.S. insurers to prepare for European-style Own Risk and Solvency Assessments (ORSA)
-- Preparing for a possible crisis in the U.S. student loan market
Promontory, headquartered in Washington, D.C., is a global consulting firm for financial services companies. The firm specializes in solving regulatory, risk, controls, compliance, governance, capital, and liquidity issues. Promontory has offices in Atlanta, Brussels, Denver, Dubai, Hong Kong, London, Milan, New York, Paris, San Francisco, Singapore, Sydney, Tokyo, Toronto, and Washington. Eugene A. Ludwig, who served as U.S. Comptroller of the Currency under President Clinton, founded Promontory in 2001.
For more information on Promontory Financial Group in Asia, Frederic Lau at +852-3975-2901 or Alexander Carmichael at +65-6410-0900.
Asia Anne Pang College Hill +852-3791-2287 email@example.com Americas Debra Cope +1-202-384-1011 firstname.lastname@example.org
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