Martin Rose’s Post

In a speech at the 23rd FED-IMF-World Bank Annual International Conference on Policy Challenges for the Financial Sector, IMF Financial Counsellor Tobias Adrian discussed the overall global financial environment that currently sets the scene for the risk landscape in the financial sector. He also underscored the importance of full, timely, and consistent implementation of the Basel standards. This year’s conference theme centered around the importance of strengthening fundamentals to better adapt to the evolving risk landscape. The conference’s objective is to discuss how central banks and financial sector supervisors and regulators are responding to financial stability risks from an ongoing challenging macroeconomic environment while continuing to make progress on longer-term priorities, including challenges arising from technological and climate-related financial risks in the financial sector. Key financial stability risks, supervisory and regulatory issues, as well as crisis management preparedness were explored. Read the speech 👉 https://lnkd.in/eJ9BN42a

ECB has just published the supervisory priorities for 2025-27! The focus is on "banks’ resilience to immediate macro-financial threats and severe geopolitical shocks (Priority 1), the importance of timely remediation of known material shortcomings (Priority 2) and the need to tackle challenges stemming from digital transformation and new technologies (Priority 3)". https://lnkd.in/dQy53_D3

The ECB has published its 2025 – 2027 supervisory priorities, calling on banks to focus on resilience to macro-financial risks and severe geopolitical shocks, tackling governance and climate-related shortcomings, and driving digital strategies to address emerging challenges. This includes sharpening risk management frameworks, aligning with supervisory standards on climate risk, and adapting to new technologies. Explore KPMG’s latest insights on the ECB’s supervisory priority areas for 2025 – 2027 and crucial recommendations for banks to consider: https://shorturl.at/Ilhp4 #SSM #ECB #BankingSupervision

!!! ECB !!! >>> SREP priorities for 2025-2027 <<< The #ECB has published the results of its Supervisory Review and Evaluation Process (#SREP) for 2024 and its supervisory priorities for 2025-27. The supervisory priorities for 2025-27 include: - banks’ strengthening their ability to withstand immediate macro-financial threats and severe geopolitical shocks; - banks' strengthening their digitalisation strategies and tackling emerging challenges stemming from the use of new technologies; and - banks' remedying persistent material shortcomings in an effective and timely manner. In areas which have been subject to close supervisory scrutiny in the past, supervisors’ efforts will focus on banks’ effective and timely remediation of identified deficiencies. This is especially true of risk data aggregation and risk reporting (#RDARR) – where, despite long-standing engagement with supervisors and acknowledged improvements, some banks have still not addressed major shortcomings, according to ECB. In addition, full compliance with supervisory expectations as regards banks’ management of climate‑related and environmental (#C&E) risks will remain a priority (#ESG). Best regards Hartmut Renz Partner, STRATECO GmbH For more details please see ECBs website. https://lnkd.in/eWP9JZ2u

Earlier this week, American Banker published an article that I wrote about the Basel III Endgame. I argue that Basel III in many ways represents an effort to move past the Great Financial Crisis once and for all by bolstering our economic resilience, improving systemic risk protections, and expanding the toolset for regulators to address economic instability. Basel III’s focus on maintaining and further calibrating regulatory capital along with improving global coordination on systemic risk management is fundamental to better withstand types of economic disruption. You can read the full article here: 

For this week we would recommend a quick read of Keynote speech by Claudia Buch, Chair of the Supervisory Board of the ECB, at the 2024 Annual ECB Banking Supervision Research Conference. #GTQuantRisk The speech is focusing at Current challenges in supervision and new challenges for researchers;   ·        According to the author the banks need to consider alternative approaches to account for emerging risks and uncertainties, says Supervisory Board Chair Claudia Buch. Closer cooperation between supervisors and researchers can help gain deeper insights into these challenges.   ·        The 2008 financial crisis profoundly disrupted the stability of the global financial system. The collapse of Lehman Brothers, market crashes, and the subsequent recession exposed critical vulnerabilities in the banking sector, marked by excessive risk-taking, lack of transparency, and inadequate regulatory controls.   ·        In response to this debacle, there were calls for a return to “boring banking” - a term that refers to a more conservative, predictable approach focused on stability and risk minimisation, as opposed to speculation and complex financial practices.   ·        More than 15 years later, banking remains anything but boring. The industry has evolved significantly, facing a constantly changing financial and regulatory landscape driven by technological advances, shifts in consumer demand, and the emergence of new threats. In this dynamic context, strong governance and robust risk control mechanisms are more critical than ever for addressing emerging risks and maintaining stability Full Article: https://lnkd.in/eki85YgW

🏦 ECB consults on governance and risk culture The European Central Bank (ECB) has launched a public consultation on its new draft Guide on governance and risk culture, inviting feedback from banks and stakeholders until October 16, 2024. This initiative aims to replace the 2016 supervisory statement and outlines updated expectations for banks' internal governance. Key highlights include: - Focus on Diversity and Effectiveness: The Guide emphasizes the need for diverse and effective management bodies, a priority for the Single Supervisory Mechanism (SSM). - Clarified Expectations: It details how management bodies should operate, the roles of internal control functions, and the importance of a robust risk culture. - Practical Reference: The Guide serves as a roadmap for banks, incorporating recent updates from the European Banking Authority and examples of best practices. - Ongoing Scrutiny: The ECB will intensify its oversight to ensure banks implement necessary governance improvements, particularly in light of past financial crises. A stakeholder meeting is scheduled for September 26, 2024, to discuss these developments further. This consultation marks a significant step towards strengthening governance standards in the European banking sector. Link - https://lnkd.in/gbZfJe4u #riskspotlight #operationalrisk #operationalriskmanagement #riskculture #riskgovernance #riskmanagement

The ECB has published its 2025 – 2027 supervisory priorities, calling on banks to focus on resilience to macro-financial risks and severe geopolitical shocks, tackling governance (incl. RDARR expectations) and climate-related shortcomings, and driving digital strategies to address emerging challenges. This includes sharpening risk management frameworks, aligning with supervisory standards on climate risk, and adapting to new technologies. Explore KPMG’s latest insights on the ECB’s supervisory priority areas for 2025 – 2027 and crucial recommendations for banks to consider: https://shorturl.at/Ilhp4 #SSM #ECB #BankingSupervision

The ECB has published its 2025 – 2027 supervisory priorities, calling on banks to focus on resilience to macro-financial risks and severe geopolitical shocks, tackling governance and climate-related shortcomings, and driving digital strategies to address emerging challenges. This includes sharpening risk management frameworks, aligning with supervisory standards on climate risk, and adapting to new technologies. Explore KPMG’s latest insights on the ECB’s supervisory priority areas for 2025 – 2027 and crucial recommendations for banks to consider: https://shorturl.at/Ilhp4 #SSM #ECB #BankingSupervision

The ECB has published its 2025 – 2027 supervisory priorities, calling on banks to focus on resilience to macro-financial risks and severe geopolitical shocks, tackling governance and climate-related shortcomings, and driving digital strategies to address emerging challenges. This includes sharpening risk management frameworks, aligning with supervisory standards on climate risk, and adapting to new technologies. Explore KPMG’s latest insights on the ECB’s supervisory priority areas for 2025 – 2027 and crucial recommendations for banks to consider: https://shorturl.at/Ilhp4 #SSM #ECB #BankingSupervision