‘Regulatory reporting’ is the submission of raw or summary data needed by regulators to evaluate a bank’s operations and its overall health, thereby determining the status of compliance with applicable regulatory provisions. Governments across the world give prime importance to keep their banking systems updated. This has proved to be an important task, more so after the…
There are undoubtedly a lot of challenges banks are currently facing. The dynamic regulatory environment and the rise of technology in everyday banking activities is changing the way we bank, and catering to this fast evolving dynamics is tough for most banks. This is where FinTech is making a difference. According to the infographics created…
Imagine going to a tailor and discovering that there is no measuring tape, just ready-made clothes of one size, meant for all. While it would be suitable for people of a particular size, there would be a large number of customers who would be highly disappointed. There would be greater confusion if the tailor stitched…
Anti-Money laundering (AML) is a term mainly used in the financial and legal industries to describe the legal controls that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities. Money laundering activities typically aim to generate income with no regulation to maximize income for as little cash outflow as possible, with no…
While we have previously analyzed the impact of regulations on banks due to various key issues (see related articles at the end of the blog), implementation of new technology and the need to update IT infrastructure has been a significant issue for banks and financial institutions. Regulators demand information on various activities (liquidity management, asset…
The Basel Committee of Banking Supervision’s (BCBS) guiding principles, titled BCBS 239: Principles for Effective Risk Data Aggregation and Risk Reporting came into being in the aftermath of the 2008 Financial Crisis. The global financial crisis brought to the fore how banks’ information technology (IT) and data architectures were inadequate to deal with the management…
As reported in a survey by Americans Abroad Global Foundation (AAGF) and the University of Nevada, 80% of US citizens living abroad believe that the US Tax laws are more complicated than the tax law in the country of their residence. In addition, an overwhelming 86% also said that FATCA needs to be reworked to…
Banks are under the scrutiny of various regulatory bodies to keep a check on their activities, especially the banks conducting risky operations that could result in a meltdown, as was the case in 2008. However, since the enactment of the Dodd-Frank Act, they are now under a lot of stress to effectively achieve and maintain…
It’s a vicious cycle. The economic crisis caused by the financial downturn led to regulators coming up with new reporting requirements and changes in regulatory reporting formats. Financial institutions as well as banks are now finding it harder to cope with the different regulations. Why are banks struggling? Reporting and collating a constant stream of…
In the United States there are around 7000 banks and based on their asset size these banks are categorized as small, medium and large. Regulatory impact on these banks has resulted in various internal developments and changes. Let us take a look at the regulatory impact on large banks. Who are Large Banks? Categorizing…