Transcript Title of Presentation

Global Stress Testing Regimes
and Capital Allocation
Moderator:
Keri Kramers-Dove
Vice President, Scores and Analytics
FICO
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Panel
Keri Kramers-Dove
Vice President,
Scores and Analytics
FICO
Anna Napier
Director,
Regulatory Consulting
FICO
Cristian deRitis
Senior Director
Moody’s Analytics
Luther Klein
Partner
Accenture
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
With the advancement in regulations, banks
are going through rigorous structural, capital
and systems changes in order to comply
Explore the impact of growing regulatory
oversight and varied stress testing regimes
on global banks’ allocation of capital
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© 2014 Fair Isaac Corporation. Confidential.
Federal Reserve
CCAR- DFAST
Global
Regulatory
Test Regimes
Bank of England
FPC and PRA Stress Test and
Capital Adequacy
European Banking Authority
CBRC
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© 2014 Fair Isaac Corporation. Confidential.
Increased and
improved
Supervision
Research Study
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© 2014 Fair Isaac Corporation. Confidential.
Capital Adequacy Practices Have Become Global
► What
are the differences between NA and International
bank’s approach to capital adequacy
► Are
there differences in how the four tiers of banks
address stress testing and capital adequacy
► Priority, Approach,
► What
Organization, Data, Adoption
are the standards or best practices in capital
adequacy approaches, tools, practices
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© 2014 Fair Isaac Corporation. Confidential.
Distribution of Respondents
By Firm Size
23%
Tier - 1
Tier - 2
7%
23%
9%
Tier - 3
30%
Tier - 4
34%
29%
39%
0
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By Geography
10
20
© 2014 Fair Isaac Corporation. Confidential.
30
40
50
North America
Asia Pacific
Europe
Rest of World
Research Results: General Observations
Topic
Regulatory
Focus
Observations
►Basel
III tops the compliance agenda in Europe and APAC while CCAR
and Dodd-Frank dominate North America
►Regulatory
Stress Testing
►Not
compliance is largely a reactive exercise across the board
yet a “core” board issue
►Largely
a reactive exercise driven by compliance, not embedded into
business planning
Data
Management
►Data
quality issues plague institutions—the majority have limited data
governance programs
►Approach
varies across bank size—Tier-1 institutions delegate
responsibility to individual business lines, Tier-2–4 institutions have
greater centralization of responsibility around data quality and data
strategy
© 2014 Fair Isaac Corporation. Confidential.
Panel Questions
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© 2014 Fair Isaac Corporation. Confidential.
Questions
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© 2014 Fair Isaac Corporation. Confidential.
Thank You!
Keri Kramers-Dove
[email protected]
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
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© 2014 Fair Isaac Corporation. Confidential.
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Keri Kramers-Dove
[email protected]
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© 2014 Fair Isaac Corporation. Confidential.