New global banking regulations require a fresh look at booking models

CCAR attestation change would be about more than just forms
Posted by David Wright and Irena Gecas-McCarthy, on October 12, 2015.

Booking models in banking have traditionally been driven by a diverse set of factors–such as business priorities, legal and regulatory requirements, tax, and financial performance. When those models change, it usually happens incrementally over time in response to specific opportunities and business needs. It also usually happens without a holistic analysis that accounts for an integrated or big-picture view. But now, the regulatory environment and business strategy questions are driving rapid change.

Regulatory reform–both at home and abroad-is creating new and complex rules that are having a major impact on the way products are booked. As banking organizations comply with new regulatory requirements and supervisory expectations, they are overhauling business models and transforming how they operate. The need for transparency around booking models lies at the center of this change, since booking models determine how and where banking organizations transact. They also determine how the resulting risks are managed, both individually within a specific jurisdiction and together across multiple jurisdictions. Booking models are increasingly under scrutiny, and regulation and supervision are now key drivers of cross-border practices.

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Regulatory Liason Office: Savvy Investment or Basic Necessity?

Regulatory Liason Office: Savvy Investment or Basic Necessity?

In today’s challenging regulatory environment, a new corporate role of regulatory liaison with staff to support it is emerging to provide a central point of contact for the regulatory community. This role known by different names effectively is a liaison for an organization in their management of their regulators, and assists together with other support functions, e.g., legal, risk and compliance, to manage a organization’s regulatory issues. Historically, this role was assigned to a single executive dedicated to regulatory risk management, or as a part-time responsibility of that executive who usually was a member within the C-Suite of the bank, e.g. the chief operating officer (COO) or chief administrative officer (CAO). However, as the complexity and impact of regulations continued to develop and capture significant amounts of management’s time , many organizations began to recognize the need for a more comprehensive Regulatory Liaison Office (RLO) outfitted with staff consistent with other functions within the risk and compliance organizations.

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