Instituting a Funds Transfer Pricing (FTP)-driven Decision Enablement Framework in Banks:
Worldwide, banks operate in a highly complex and competitive landscape. The boundaries of competition have gradually extended from peer banks to insurance companies, investment companies, mortgage companies and across multiple geographies. With growing penetration of the internet and social media, consumers have become more knowledgeable and are demanding competitive rates, along with diminishing brand loyalty. This latest paper details the concept of FTP as a tool to measure performance via a variety of dimensions and how it can add value to the banking organization for better performance management.
Banking On Cloud: Essential Tips for Implementing a Cloud Strategy:
Given the recent financial crises and the subsequent regulatory pressures, the cost of IT has grown exponentially for not just the banking organisation on the whole but even at a divisional level. Banks are now faced with drastically cutting IT costs, but not at the cost of compromising data security and integrity, which could lead to reputational, legal, monetary damages. Cloud as a technology option for Data and business processes has gained a credible foothold in recent times across several industry sectors including financial services. This latest paper details the ‘must knows’ for implementing an efficient and secure information management framework in a Cloud environment.
Operations Risk Management: RCSA Management and Analysis:
A strong RCSA (Risk Control Self-Assessment) framework, together with the Operational Risk Policy helps assess Operational Risk and the overall effectiveness of the Bank's internal control environment. While RCSA data can be used to compute capital charge for Operational Risk, it forms the building blocks for AMA (Advance Measurement Approach) under the Basel guidelines. This latest paper explains the concepts of RCSA and illustrates how capital charge for Operational Risk can be consolidated from entity level to organization level.
Banking Innovation: A Case for CaaS ( Compliance as a Service):
Changes in banking industry are driven by fluctuating customer needs. Moreover, the regulatory environment globally is not only undergoing immense changes, but is also unclear on several aspects, owing to varied perspectives of regulators and institutions overseeing banking operations. This paper elaborates the dynamics of addressing a challenging regulatory ecosystem and why ‘CaaS’ could be an idea who’s time has come.
Leveraging XBRL for Standardisation & Accuracy in Regulatory Reporting: The XBRL journey by RBI for its returns submission is picking up velocity by RBI publishing taxonomies for returns on a regular basis. This will clearly push financial institutions to accept the mechanism in a short span of time. Having said this, the mechanism is still in its nascent stage and will definitely undergo repetitive changes in the coming months.
The journey from CAMELS to INROADS: The Reserve Bank of India (RBI) has recently identified 30 banks to transition from CAMELS (Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Systems and Control) to INROADS (Indian Risk-Oriented and Dynamic Rating System) – India’s Risk Based Supervision (RBS) regime. This paper highlights its impact on banks.
NPA Management. The Need To Balance Credit Quality With Growth: This paper discusses why smart management of the asset lifecycle can enable Banks to not just be compliant, but over the long term, also help adjust their credit policy, product portfolio and lending processes in a bid to reduce bad loans.
Higher Capital in Basel Advanced Approaches. Debunking the IMA Myth: This paper discusses how IMA aims to reduce the capital requirement, and also why it is important for banks to understand the rationale behind the IMA.
Single Extraction. Diverse Reusability: This in-depth whitepaper highlights how the SEDR approach can help banks plan and execute their strategies successfully. The concept is based on the principle that you collect granular data from all banking systems once and reuse the data for multiple applications.
A Holistic Approach to Business Alignment: BPM from a Banking Perspective: This paper focuses on the importance of ‘Business Process Management’ and why banks need to start looking at it from a different perspective to help optimize and improve business processes. Download
A peek into Computing Appliance: This whitepaper focusses on Computing Appliance and highlights the architecture, approach, applications, benefits and challenges. Download
Acting today v/s tackling a larger problem tomorrow. Data Quality in Banks: This detailed paper delves into the data quality issues faced by banks and brings out the importance of business management teams in having a focused approach towards addressing the issues. Download.
Business Intelligence for Central Banks: Business Intelligence is about giving life to data, allowing the data to reveal inherent problems that would not be directly visible in the numbers. From trend graphs to cartographic representations, central banks need a variety of BI tools to understand where imbalances lie. Download.
Basel I to II: This whitepaper explains the changes introduced in Basel III and explains the concepts with examples to increase understanding of the new guidelines and its impact on banks. Download
Basel III: Basel III guidelines are still in its formative stages and are not final. Basel III involves significant changes in the bank's capital structure and risk management processes and there is a lead time of more than 6 years before it gets implemented.Download
Integrated Stress Testing Architecture:Risk-control assessment in financial institutions should not just be limited to identifying failures in processes and exposure levels. It must also perform routine 'what-if' analyses to stress test the changes in capital requirements. Download