WEDNESDAY, 30 NOV 2022

 

CONNECT

Facebook Linked In Twitter
IMH LTD

Kokkinos: Cyprus Ranks 10th In The EU As An Innovative Economy

European Commission Agreement To Mobilise €500 Mln For Social Investments

IMH LTD

PROFESSIONAL SERVICES

brought to you by PWC

PwC Banks Survey: More People Needed to Prepare for Stress Tests

PwC Banks Survey:  More People Needed to Prepare for Stress Tests

A new report from PwC has revealed that banks do not have enough employees dedicated to preparing for tougher regulatory stress tests. The report, Passing the stress test, based on a global survey of 24 mainly non-US banks, found that, overall, participating banks are confident that they meet current regulatory requirements but that they underestimate the amount of resource needed to meet the demands of a tougher regulatory stress testing regime.

 

90% of respondents have fewer than 20 people dedicated to stress tests. This is less than half of that typically seen in comparable US banks (some US banks have significantly more), which have increased staff levels in response to demands imposed by the Federal Reserve. None of the respondents to the survey planned to recruit more than 20 people to work on stress testing in the next three years.

 

Most respondents acknowledge that additional investment will be required. Only 13% of respondents reported they already have sufficient, adequately skilled staff to conduct regulatory stress testing with most others citing some gaps in existing staff capabilities and, more typically, numbers. 


Stelios Constantinou, Banking industry leader at PwC Cyprus commented:

 

“The way global banks prepare for stress testing needs to change. Past experience has shown that very demanding regulatory stress testing regimes require larger teams with the appropriate skills to deliver value. 

 

“In order to meet future regulatory demands, banks need to move regulatory stress testing from a standalone process to one that has more resource and is integrated with other parts of the business and its strategy. Banks face a complex challenge in simultaneously managing the delivery of stress tests and improvements to their stress testing processes, made more challenging by the changing regulatory landscape.

 

“The way banks carry out regulatory stress tests is becoming more critical, simply because of their power to set capital buffer levels, determine management actions and restrict dividends and employee bonuses. Stress testing sits squarely on the agenda of CEOs. 

 

“For most banks, stress testing will require sustained focus over a long of time and employing more people dedicated to stress testing will be needed. But the rewards are potentially great as those banks that pass stress tests and don’t lag behind their competitors could achieve a relatively lower capital buffer.”

 

To download a copy of Passing the stress test, visit www.pwc.co.uk

MORE ON PROFESSIONAL SERVICES

AstroBank Acquires QQuant Master Servicer Cyprus

Qualco Group and AstroBank announce the acquisition of QQuant Master Servicer Cyprus ...

Funds Distribution: Can It Become Global?

The International Funds Summit & Expo returns for the 8th time on 7-8 November 2022 at ...

Hellenic Bank: Oliver Gatzke Suspended From His Duties

The Board of Directors of the Bank has decided, in order to ensure the smooth conduct of ...

FROM AROUND GOLDNEWS

   

Grand Opening Of Simplex LCA1, Cyprus’ Largest Data Center

Data centers are the foundations of the digital economy and as evidently demonstrated during the COVID-19 pandemic, critical infrastructure for the global ...
   

Defence Minister Discusses Bilateral Relations, E. Med And Turkish Provocations During Official Serbia Visit

Cyprus’ Defence Minister, Charalambos Petrides was on an official visit to Serbia on Tuesday during which he discussed with his Serbian counterpart, ...
   

AWS Helps Ukraine Safeguard Its Future

On Tuesday, November 29, at the AWS re:Invest 2022 in Las Vegas, the Ukraine Deputy Prime Minister and Minister for Digital Transformation Mykahilo Federov and ...
   

AWS re:Invent 2022 Opens Its Doors

On Monday, November 29, the AWS re:Invent 2022 opened its doors to the global cloud community to celebrate its successes over the year, showcase the power of ...
   

Cyprus Is Dealing With The Economic Crisis With Specific Investment Policies And Programmes, Finance Minister Says

Cyprus is dealing with the economic crisis with specific investment policies and programmes, bringing growth to 6%, and increasing the fiscal reserve to ...
   

Alphamega Hypermarkets Holds Big Christmas Tree Lightning Celebration

Alphamega Hypermarkets has officially started counting down to the most wonderful time of the year. Five Alphamega stores held simultaneous Christmas tree ...
   

3rd Annual Corporate Blood Donation Limassol Success

On the 2nd and 3rd of November 2022 with the initiative of the company Royal Pine, the 3rd Annual Corporate Blood Donation Limassol took place.
   

Kokkinos: Cyprus Ranks 10th In The EU As An Innovative Economy

Cyprus, as an innovative economy, based on European indicators, currently ranks 10th, compared with 22nd until five years ago, when it did not have the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

simplex 16/11-13/12
imarcomms november

IMH LTD