- Santander, with Bank Zachodni WBK, acquires Polish retail banking business
- FCA makes it easier for people to compare bank accounts
- UniCredit agrees to sell down FINO portfolio below 20 per cent
- Re-mortgaging boost continued in October
- CBA accused of failing to disclose cash transactions that exceeded legal limit
- Responsibility to take forward New Payments Architecture Blueprint moves to NPSO
- Barclays launches range of green Corporate Banking products expired
- EBA publishes final draft technical standards for register under PSD2 expired
- Research shows financial services are bringing offshore jobs back to the UK expired
- Fed Board seeks comment on proposed changes to Payment System Risk Policy expired
- FCA publishes update on proposed new rules to help credit card customers in persistent debt expired
- Lloyds Bank simplifies small business overdrafts 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."