- KeyBanc Capital Markets to acquire Cain Brothers
- CIBC launches new direct banking brand through Simplii Financial
- First-time buyer activity continues to grow in June
- MarketInvoice teams up with Veritas Commercial Services
- Online lender Quidie unveils new marketing push
- The Start-up Loans Company joins NatWest and RBS to fund British businesses
- Brexit woes for UK mortgage market as lending slows, says GlobalData expired
- 360 Mortgage Group launches online mortgage platform expired
- KeyBank creates Corporate Responsibility National Advisory Council expired
- Wirecard supports Singtel’s roll out of first virtual Visa card in Singapore expired
- ECB publishes Consolidated Banking Data for end March 2017 expired
- ArchOver grows team with new director 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."