Bank of England heads simulation to test UK financial sector resilience
The Bank of England has partnered with HM Treasury and the Financial Conduct Authority to undertake a two-day simulation exercise.
Meeting Bank of England, PRA & FCA Demands For Operational Resilience
Read more here: https://fsclub.zyen.com/events/webinars/building-operational-resilience-bringing-together-multiple-disciplines/
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In this webinar, Anita and Palvinder seek to:
Put the incoming UK operational resilience regime in context and provide a view of its key elements;
Give a flavor of BOE/PRA/FCA expectations; and
Highlight why this framework is multidisciplinary and requires a change in perspective.
Anita Millar is a risk and public policy professional with over 20-years of experience working in the financial services sector. Her career spans risk management, audit, and consulting on regulatory change. She has held roles at ISDA, HSBC, Insight Investment, AFME, Northern Trust, and RBS. Her regulatory work spans cross-border regulation, Basel II (credit & operational risk), Basel III (capital & liquidity), MiFIR, EMIR, EU Banking Union and a proposed EU Financial Transaction Tax (FTT). She has also written research reports for City of London Corporation/TheCityUK and Invest Europe (previously EVCA).
Palvinder Gill is a senior prudential and risk practitioner having held roles at Credit Suisse, Macquarie Group, Morgan Stanley, Nomura and Wells Fargo. He has also worked as a policy maker at the Bank of England and FSA and as a regulatory consultant at EY. His regulatory and risk prudential capital and liquidity projects including Basel II, Basel III, ICAAPs, ILAAPs, Recovery Plans, FRTB, IFR/IFD, Pillar 3 Disclosures and TCFD Climate disclosures.
OneSavings Bank: Using a crisis simulation to strengthen operational resilience
OneSavings Bank, a UK firm with a 150 year heritage, takes its regulatory and business responsibilities very seriously. The firm undertook an operational resilience programme to evaluate its ability to respond to operational and financial crises.
We worked with the senior leaders at the bank to understand their challenges and collaboratively develop a crisis simulation. The bank’s entire board of directors and CEO participated, underscoring the importance of the experience.
With the exercise, senior leaders were able to strategise their response to real-world risks and threats and identify opportunities for improvement. As a result, they will be better equipped to execute and continue operating successfully when a crisis does strike, ensuring the bank provides continuous services to its customers.
Commercial Bank Stress Tests – Financial Economics
In this short video on financial economics, we look at stress testing of commercial banks and building societies.
Stress tests assess commercial banks’ ability to withstand severe shocks, but also to maintain the supply of credit under severe stress.
The Bank of England conducts annual stress tests to check the resilience of the banking system.
When a bank is found to have insufficient capital, then it must take steps to increase their capital reserves.
The 2019 Bank Stress Test for the UK
Sterling exchange rate index falls by 28%
Monetary policy base interest rates rise to 4%
Household property prices fall by 33%
Share prices fall 41%
Start-to-trough fall in global GDP of -2.6%
UK real GDP falls by 4.7%
Unemployment rate rises to 9.2%
Banksters: The Untouchable Bank (Global Finance Scandal Documentary) | Real Stories
From the director of ‘Goldman Sachs: The Bank that Rules the World’ comes a major new investigation into corruption at one of the world’s top financial institutions – HSBC.
If HSBC were a country, it would be the fifth world economic power. Founded during the golden age of the Opium trade to enable the British Empire to access the Chinese market, it has created a unique network to move dirty money around the world. From tax evasion to money laundering for the mafia and manipulation of currency, “this bank had done everything bad that a bank can possibly do.”
In 2012, HSBC nearly lost its license to operate in the US for laundering the money of the Mexican and Columbian drug cartels. Criminal charges were filed and HSBC’s executives hauled before a Senate committee. But George Osborne, UK’s then Chancellor of the Exchequer, wrote to his counterpart in America and to the Chairman of the Federal Reserve to plead for leniency. He claimed that if HSBC received a harsh punishment, it would have serious repercussions on the world’s financial and economic stability. The letter worked and HSBC was fined 2 billion euros. The equivalent of one month’s profits.
As the center of international finance moves to Asia, HSBC is in prime position. It is the most Chinese of Western banks and the most European of Chinese banks. Protected by London, blessed by Beijing, who would dare attack it?
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