17th October 2017, London: 4most, the global credit risk consultancy, today announces the appointment of Ramesh Indran as Head of Insurance. Ramesh joins 4most from Deloitte’s Actuarial & Advanced Analytics practice where he was a Senior Manager.
Last week we heard that the European Central Bank had closed ranks with the Bank of England to avert the Brexit crunch. With the vote of the EU Referendum hanging in the wings, the European Central Bank has pledged to flood the financial system with euro liquidity if credit markets seize up after a Brexit vote.
We’ve got quite used to hearing the misery and bad news associated with UK banks since the financial crisis, yet one of the positive sides to this debate has been the rise of the challenger banks. These secondary players have grown quickly, with several listing last year as the sector continues to attract both customer and investor interest. The challenger banks have also long been praised by some politicians as being responsible for injecting much-needed further competition into the UK banking sector.
Another interesting consideration ahead of the impending accounting standard IFRS 9, is the effect this could have on valuation and pricing. Under IAS39 you only consider lifetime losses when the impairment event has already happened so you only hold a small amount of provision for your entire up to date book.
Last week the headlines unveiled ramblings of a new stress test from Europe’s top banking regulator, which it suggests is impossible for the region’s lenders to fail. True? Well, the watered-down, stress-free stress tests come at a time of market chaos, according to reports, and also amid investor concerns over the strength and stability of the European banking industry.
In line with the impending changes to accounting rules via IFRS 9 Financial instruments standard in the EU, it’s been announced that the European Banking Authority (EBA) is launching an impact assessment of the standard on a sample of approximately 50 institutions across the EU.
That is exactly what Albert Edwards strategist at the bank Société Générale would have us believe. Alongside RBS, he is warning of a new crash, saying oil price plunge and deflation from emerging markets will overwhelm central banks, tip the markets and collapse the Eurozone.
Since the publication of the Final Standard in July 2014 and the previous release of the Exposure Draft, there has been a lot of thinking and analysis on what the requirements for IFRS 9 really mean and how practically to implement them in different organisations.