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White Paper

THE IMPACT OF INTEREST RATES ON THE CREDIT MARKET

Over recent years the interest rate environment within the EU and UK has significantly changed, with banks standing to gain significantly from a widening Net Interest Margin, however as interest rates stabilise and some predict a reduction in the future, this margin is beginning to tighten, but through the use of innovative techniques and processes, banks can increase efficiency and maximise their effectiveness in the credit process.

White Paper

Climate and environmental risk integration within the prudential framework: Sustainable-FRTB

Climate change will continue for many decades to come, Banks should adequately incorporate climate-related and environmental risk within their governance and risk management frameworks in order to mitigate risks.

White Paper

EBA’S NEW REQUIREMENTS ON CSRBB MANAGEMENT

On 20 October 2022, the European Banking Authority (EBA)published new regulatory requirements on Interest Rate Risk and Credit Spread Risk in the Banking Book (IRRBB / CSRBB) aiming to finalise the implementation of Basel III requirements (BCBS368, Guidelines on IRRBB) in the European Union.

White Paper

EXPLORING THE IMPLEMENTATION OF THE EU TAXONOMY FOR FINANCIAL INSTITUTIONS

The birth of a general and structured regulation framing environmental performance of financial institutions creates a series of governance and practical questions within the industry. Its relative nascent stage requires an implementation far from traditional financial and risk reporting. Banks and Insurances, among others, need to anticipate the role of all their business lines, their data and insurers their top governance management in this implementation.

White Paper

Integrating Climate Risk into Credit Risk Modelling

This opinion paper note intends to describe the emerging practices in terms of integrating climate risk into credit risk modelling.

Climate change

White Paper

Climate risk stress tests – Challenges & Capabilities

The purpose of this paper is to share preliminary thoughts regarding climate risk stress tests including already planned ECB SSM climate risk stress testing exercise but also our service offer for French customers in terms of climate risk stress testing. It describes our main skills and capabilities including our analysis and acceleration tools before sharing the types of interventions that we cover and our credentials.

Stress Tests

White Paper

Stress Tests

The purpose of this paper is to share our service offer for French customers in terms of stress testing. It describes our main skills and capabilities including our analysis and acceleration tools before sharing the types of interventions that we cover and our credentials.

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Environment & Climate Risk

White Paper

Environmental & Climate Risk Service Offer

The purpose of this paper is to share our service offer for French customers in terms of climate risk management. It describes our main skills and capabilities including our analysis and acceleration tools before sharing the types of interventions that we cover and our credentials.

Wind Down Planning

White Paper

A Practical Guide to Wind Down Planning

Wind-Down Planning remains high on the agenda of the Financial Conduct Authority (FCA). The first part of this paper describes the WDP in more detail, summarising its purpose, differences to other regulatory requirements, and what information should a plan include for it to be compliant. The following section lays out practical considerations on the four key themes that firms should scrutinise when improving their WDP.

Reputational Risk

White Paper

Reputational Risk for Financial Institutions: The Quantitative Approach

Avantage Reply has designed a quantitative model for the assessment of Reputational Risk, traditionally considered as discretionary, subjective and highly prone to interpretation. The Reputational Risk Quantitative Model allows us to overcome the reliance on human sensitivity for risk management. Download our white paper to find out more about the Q-model.

UK Finance

White Paper

Financial Services Future Regulatory Framework Review: Phase-II Consultation 2

The FRF review is a major opportunity to improve the effectiveness and efficiency of banking and finance regulation now that the UK can determine its regime according to its own priorities. In this response to HMT’s first consultation on phase II of the review, we make detailed proposals for updating the framework under five main headings.

Liquidity Management

White Paper

Liquidity Stress Testing Toolkit

Leveraging on its experience and in line with market practices, Avantage Reply has developed a Liquidity Stress Testing model. Flexible and easy to use, it provides financial institutions with a toolkit which allows them to easily perform internal stress tests and integrate outcomes into decision-making processes.

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Liquidity Stress Testing Toolkit 0

UK Finance

White Paper

Improving Cost/Benefit Analyses by Financial Services Regulators

UK Finance prepared this paper, with the support of Avantage Reply, at the request of HM Treasury (HMT) officials ahead of an anticipated consultation on their approach to the next phase of the financial-services future regulatory-framework review later in 2020. The paper’s focus is identifying the current way regulators analyse the costs and benefits of their interventions and the mechanisms for scrutinising these analyses.

White Paper

Sustainable Finance (esg, sdg & climate) - risks & opportunities for Banks and Institutions

This paper provides an overview on ESG, focusing on Climate and Environmental Finance and Risk, with emphasis on challenges related to specific ESG factors that could be turned into opportunities if managed promptly.

Covid-19

White Paper

The New Normal: how Capital Markets can turn the Coronavirus threat into an opportunity

This unexpected crisis raises questions about the effectiveness and agility of banking models and existing risk management frameworks.

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Climate Change

White Paper

Beyond Green Banking, Climate Change is changing Prudential Supervisory Expectations for Banks

Climate change is an important and growing trend for the financial sector. The rapidly developing supervisory, investor and customer expectations are presenting new challenges to the financial services sector. As a consequence of the changing risk profile, supervisors in the EU and UK are setting new expectations to ensure banks pro-actively manage their climate-related financial risk.

REGULATORY REPORTING

White Paper

A practical guide for independent directors, executives and heads of regulatory reporting

This Practical Guide will share insights regarding typical root causes for the issues raised by the ECB, the FCA and the PRA — as well as potential ways these issues can be addressed.

A practical guide for independent directors, executives and heads of regulatory reporting 0

White Paper

Regulatory Reporting – Impacts and Insights for The Data Point Model 3.0

Last Autumn the EBA released its public consultation on the revision of the Implementing Technical Standards (ITS) for Regulatory Reporting and the harmonization of disclosures in the Euro System. We have analysed the new requirements and offer our insights in this white paper, considering the impacts that Financial Institutions can expect and for which they should prepare.

GRC

White Paper

Governance, Risk and Compliance

This White Paper discusses questions such as: What are the supervisory expectations on Internal Control and how can GRC tools support an efficient Internal Control Framework? What needs to be considered when planning the implementation of a GRC tool? What future evolvements need to be anticipated?

IFRS 17

White Paper

Bringing Data Governance to IFRS 17

While IFRS 17 poses a range of challenges for insurance companies, it also represents an opportunity to redesign a strategy for data governance and generate new business value. This white paper explores the impact of IFRS 17 on data acquisition, storage, analysis and reporting. It provides a thorough analysis of the impact of the new standard in each step of the reporting cycle from the perspective of different facets of data as a foundation for a an actionable roadmap.

IT Risk

How banks should address the supervisory expectations from ECB, FCA and PRA regarding the management of IT Risk

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RISK MANAGEMENT

White Paper

Empowering your people to manage risk

Managing risk is central to any business, no matter the sector. It has always been crucially important in the financial sector, but more so now than ever before due to increased regulation and media scrutiny. Managing risk effectively helps you protect customers, shareholders, your employees and ultimately, a business’ reputation.

Financial Services Outlook 2019

Key-Challenges for the Financial Services Industry

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AI Models

White Paper

The path to deployment of AI models in Banking

Recent technological advancements have accelerated the integration of AI and machine learning models into more and more banking processes. In today’s banking industry, institutions not using AI and machine learning risk losing their competitive edge, as competitors are increasingly enhancing their strategic decisions with the powerful analytical capabilities of AI and machine learning.

Brexit

White Paper

The Impact of Brexit on Financial Institutions

On 29 March 2019, the UK will leave the EU after 46 years of continuous membership. What exactly will Brexit mean for Financial Institutions? What actions will need to be taken as a result? While the exact answers to these questions depend on the outcome of UK-EU negotiations, this Whitepaper explores the consequences of the possible scenarios to help Financial Institutions brace for impact.

TRIM

White Paper

Supervisory benchmarking and TRIM

In February 2017, the ECB launched the executive phase of the Targeted Review on Internal Models (TRIM). This White Paper provides both an update for the Credit Risk side and shares the common understanding related to the latest results and future points of attention. It also discusses the requirements for the design of the process and IT architectures supporting the regulatory exercises, as well as providing best practices for institutions.

Supervisory benchmarking and TRIM 0

Operational Risk & Data Robotics

White Paper

Operational Risk & Data Robotics

Data Robotics Solutions are emerging as a highly effective, yet practical approach for banks to reduce operational risk, improve efficiency, reduce costs and derive additional value. From Robotic Process Automation to machine learning enabled Intelligent Process Automation, banks that have started implementing these solutions are reaping the rewards, both from a financial and compliance perspective.

Operational Risk & Data Robotics 0

Model Risk

White Paper

Model Risk Management

Models are an integral part of modern banking. They are used inter alia to price transactions, value portfolios and optimise returns. They are also a key cornerstone of the regulatory framework, used to determine required capital and liquidity. In this paper, we set out the key cornerstones of a modern model risk management framework. We start with an overview of the regulatory (i.e., mandatory) requirements, but then consider in greater detail other aspects of the framework, in particular those where some element of management discretion remains.

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Regulatory challenges

White Paper

Financial Services Outlook 2016 - Overview of the key challenges for firms in 2016

2016 promises to be another challenging year with more extensive regulatory involvement and further disruption of existing business models. Whilst financial industry firms will continue to rebuild their balance sheets and implement new regulations designed to strengthen standards for a simpler and safer industry, this year will bring additional challenges of dealing with new entrants, including fintech companies, and the necessity of business restructuring and portfolio rebalancing to achieve viable capital and cost bases.

Financial Services Outlook 2016 - Overview of the key challenges for firms in 2016 0

Risk Data Aggregation & Risk Reporting

White Paper

Achieving BCBS 239 compliance

The paper provides an overview of the BCBS 239, including its objectives and requirements, along with some of the stumbling blocks identified by the surveyed G-SIBs and D-SIBs so far. Finally, the paper identifies key areas for successful BCBS 239 compliance, and looks at how banks can use the requirements outlined in the principles to their competitive advantage.

Achieving BCBS 239 compliance 0

Outsourcing Risk

White Paper

OUTSOURCING IN THE ASSET SERVICING

This report takes stock of the evolving regulatory requirements and industry practices in the Eurozone and the UK, focusing on outsourcing by custodian banks, depositary banks and asset servicing companies (referred to collectively in this report as ‘custodian banks’ for the sake of readability). The intention is to provide an overview of outsourcing in the current environment and to convey an understanding of the trajectory of outsourcing practices, regulation and supervision. 

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Compliance BCBS239 ECB Data Governance

BCBS239

White Paper

A Renewed ECB Priority

On 3rd May 2024, the ECB released its Guide on Effective Risk Data Aggregation and Risk Reporting. Aimed at addressing deficiencies and guiding institutions toward significant improvements, the Guide delineates the ECB's supervisory expectations. Avantage Reply offers specialised support to Significant Institutions (SIs) and interested Less Significant Institutions (LSIs) in navigating and implementing the principles of BCBS239. 

Avantage Reply Thought Leadership and Service Offering

Crypto Asset

White Paper

UNLOCKING CRYPTO-ASSETS POTENTIAL: A CRITICAL ANALYSIS AND VALUE PROPOSITIONS

We are in a digital revolution era. Distributed Ledger Technology (DLT) and crypto-assets will lead to a significant financial eco-system modernization.

RISK MANAGEMENT

White Paper

THE EVOLVING PRUDENTIAL TREATMENT OF BANKS' CRYPTOASSET EXPOSURES

In December 2022, the Basel Committee on Banking Supervision (BCBS) published the standard on the prudential treatment of exposures to cryptoassets. Avantage Reply guides clients in the evolution of their risk management framework to stay ahead of market changes.

THE EVOLVING PRUDENTIAL TREATMENT OF BANKS' CRYPTOASSET EXPOSURES 0

White Paper

The Risk Function of "The Now": The key to thriving in a vastly digitalised economy

Financial institutions (FIs) and Banks have come a long way in their use of technology. Especially, considering the service-based nature of the FI sector, the use of computers has been widespread from the front desk teller agent in a retail bank to the back-office posttrade settlement team of a trading desk.

White Paper

Environmental & Climate-Related Risks : Our credentials

Avantage Reply has conducted a number of assigments aiming to include ESG or Climate risk composent into risk and strategic processes . If you are willing to get familiar with our concrete experiences and how we can provide you a subject matter expert support, read this asset and feel free to contact us.

Outsourcing

White Paper

Outsourcing: The Warning Bells Have Started To Ring

Over the last decade, financial institutions have become increasingly interested in outsourcing business activities in order to reduce costs, get access to new technologies and improve flexibility and efficiency. Find out more on outsourcing and third party risk management in our white paper, focusing on the EBA Guidelines and the pan-European regulation on outsourcing arrangements.

Outsourcing The Warning Bells Have Started To Ring 0

SRM

White Paper

The Single Resolution Mechanism: Stock take and looking forward

This White Paper takes stock of the current state of play of the resolution framework in the Banking Union, a little bit over one year after the entry into application of the Single Resolution Mechanism, and contemplates the associated challenges (as well as opportunities) for banks in that context.  

The Single Resolution Mechanism Stock take and looking forward 0

Outlook

White Paper

Financial Services Outlook 2017 - Overview of the key challenges for Banks

Financial Services Outlook 2017 - Overview of the key challenges for Banks 0

SSM SREP

White Paper

SSM SREP: Where are we after the first two exercises?

This White Paper shares insights on how Eurozone credit institutions have been dealing with the first two SREP exercises. It also shares our understanding of the ECB’s current and future expectations. Last but not least, the Paper explores the impact of the changes in supervisory practices and how these have affected and will continue to affect credit institutions in the Eurozone.

SSM SREP Where are we after the first two exercises? 0

AnaCredit

White Paper

AnaCredit: Analytical Credit Dataset of the ECB - Implementation Challenges and Approaches

Availability of sufficiently granular and reliable data is a major priority of the Single Supervisory Mechanism (‘SSM’). To this end, the ECB is demanding additional and more granular reporting from banks under its supervisory remit by introducing its new reporting requirement: the Analytical Credit Dataset – also known as AnaCredit.

AnaCredit Analytical Credit Dataset of the ECB - Implementation Challenges and Approaches 0

Practice note

White Paper

EU Financial Services Outlook 2015

Over the next 12 months the transformation of the financial services industry is set to continue to accelerate. This paper sets out our view on some of the key challenges for firms in 2015 across three key areas: Regulatory Change; Digital Transformation; Business Optimisation.

Recovery Plans

White Paper

THE BANK RECOVERY AND RESOLUTION DIRECTIVE

TECHNICAL STANDARDS ON THE CONTENT OF RECOVERY PLANS IN THE EUROPEAN UNION

The objective of this paper, is to provide our clients with a comprehensive review of the technical standards related to recovery plans, and observations provided by the industry. Informed by Avantage Reply’s experience in assisting our clients with the preparation of recovery plans, this paper also functions as a user-friendly guide to the technical process of recovery plan preparation.

THE BANK RECOVERY AND RESOLUTION DIRECTIVE 0

Practice note

White Paper

MiFID II: Bringing significant volume of change

MiFID II builds on the principles of original MiFID and extends the scope to cover more asset classes, financial market participants and activities. Given significant volume of change, firms need to initiate assessment of potential impact on their businesses now and start scheduling work required to comply with the regulation.

MiFID II Bringing significant volume of change 0

Practice note

White Paper

Principles for effective Risk Data Aggregation and Risk Reporting

In January 2013, the Basel Committee on Banking Supervision issued a set of Principles to improve banks’ risk management practices, decision-making processes and resolvability. This Practice Note looks into the implementation of the Principles to date not only in G-SIBs but also in medium-sized banks.

Principles for effective Risk Data Aggregation and Risk Reporting 0