- John Flint to succeed Stuart Gulliver as HSBC’s Group CEO
- Sigma publishes first-ever financial crime-related rating for Maltese bank
- Banks must tailor their marketing to individual customers, says Optimove
- Fewer than one in ten seek professional advice about financial protection, says HSBC
- OakNorth secures new investment to boost UK businesses in 2018
- US Faster Payments Governance Framework Formation Team announced
- ACI Worldwide and STET team to drive European immediate payments adoption expired
- Barclays’ Chief Compliance Officer to leave expired
- Lords Sub-Committee to look at how financial regulation will evolve after Brexit expired
- Bank of America delivers positive operating leverage in Q3 expired
- JPMorgan Chase delivered solid Q3 results, says CEO expired
- Wells Fargo’s Q3 results hit by the impact of mortgage-related litigation expired
11th August 2017
Ten years on from the financial crisis, MathWorks considers regulatory progress
On the 10th anniversary of the start of the financial crisis, Steve Wilcockson, Financial Services Industry Lead at MathWorks, commented on the regulatory progress that has been made in the sector as well as what needs to be done in the future to prevent another economic crash. He said:
“Hindsight is a great thing. Ten years ago, BNP Paribas was the first major bank to acknowledge the risk of exposure to the sub-prime mortgage market, and looking back we can attribute the financial crisis in part to model complexity and systemic obfuscation in the usually valuable derivatives and credit markets.
“A decade on, regulators and banks have tackled those problems well, but the industry now heads into a new bubble of artificial intelligence, even bigger data, crypto-currencies, robo-advisors and a proliferating patchwork of confusing, unsourced and often poorly-supported computer languages, putting the international population at risk of experiencing new global financial and economic crises.
“To maintain the industry’s public good of wealth creation, liquidity provision and sound money management, financial services must look to how ‘high integrity’ medical and automotive industries address model governance. While model and data governance have been elevated in regulations such as TRIM, BCBS 239, Solvency II and the PRA Stress Test guidance, regulators and all industry participants on sell- and buy-sides must work harder to drive thorough model governance standards Financial risk management can and should lead the industry in this regard."