Banking
The Global Banking industry is facing a range of risk and capital projection challenges. Pillar 2 and 3 of the Basel Accords, in particular, have introduced a new set of technical and philosophical demands for risk and finance management functions.
The governance structure of the Basel II framework explicitly requires risk committee governance of the enterprise risk appetite and economic capital allocation projections.
It is clear that banks are now faced with moving beyond Pillar I into the broader and more sophisticated (balance sheet and economic scenario specific) capital modelling demands that underpin Pillar 2. We draw on our experience as global leaders in the Bancassurance sector to help our banking clients’ project economic capital.
The Basel II Pillar 2 Supervisory Review Process is enterprise specific, focussing on the three main risks to economic capital not fully covered in Pillar I;
- concentration in credit risk,
- interest rate risk in the banking book
- the economic effects of ‘market calibrated’ business cycles on strategic capital.
This is precisely where the Barrie & Hibbert consultants and models operate.
To find out more about Barrie & Hibbert’s work with the banking industry, please contact Gavin Kretzschmar at This e-mail address is being protected from spambots, you need JavaScript enabled to view it