An innovative free mobile application developed by our lab to instantly visualize the basel 2/3 capital charge based on different credit risk approaches. An indispensable tool for risk managers, academics, students, modelers, managers and consultants.
Decoding the trends and anticipating the future to fuel innovation in Financial Services.
The FinCEN Customer Due Diligence (CDD) Rule drastically changed the KYC practices. In response, large CIBs are still implementing significant transformations, while some aspects of the rules are continuously subject to various interpretations
La crise du Covid-19 a été le facteur d’accélération de la digitalisation le plus puissant de ces dernières années. Dans un contexte de contrainte forte sur les coûts de distribution, les banques se doivent d’accélérer leur feuille de route pour adapter leurs modèles de services. Quels en sont les enjeux ?
How are banks tracking the various financial activities that their clients are executing via the products and services that they offer? Are they able to compare the
expected activities that their clients have indicated during the account opening process,
with the actual activities executed by their clients throughout the year? Are they able to
aggregate the total margins generated per client, across different business lines, and
compare it with the total onboarding costs for the same client?
In June 2017, the World Bank issued two bonds destined to cover developing countries against the risk of pandemic outbreaks.
En France, le 11 mai prochain apparaît comme un jalon clé dans la suite de la crise du COVID 19.
Passés les premiers jours de sidération mi-mars, les banques ont su être réactives pour assurer le fonctionnement et le soutien aux entreprises. Elles doivent désormais se tourner vers cette nouvelle étape du déconfinement, qui à n’en pas douter, sera durable…
L’enjeu est de taille : assurer la sécurité des collaborateurs et anticiper le retour à l’activité commerciale, sans connaître l’horizon temporel…
With a decrease in the use of cash, the objectives pursued by the Central Banks with an electronic and universally accessible form of money are to anticipate the disappearance of cash, create an efficient and cheap means of payment, and strengthen regulatory controls.
It is not a matter of “if” but a matter of “when”. Central Banks must define the objectives first, then get the design parameters right while carefully assessing the second order effects; and conduct thorough pilots before launching a Central Bank Digital Currency.
In the United States, planning efforts to respond to future pandemics started in 1976. It was first centered around public health and was progressively extended to other critical institutions and businesses. In this article, we’ll present three useful US-originated frameworks that can be leveraged by any business across the world.
IBOR transition represents a real challenge to financial institutions around the world. As the transition is ongoing, all difficulties have not been tackled yet and some key aspects remain to be clarified, generating new risks to manage.
CSDR | Il reste encore du chemin à parcourir pour les établissements financiers afin de se mettre en conformité avec les exigences CSDR. Tous les acteurs des services financiers sont impactés. A l’instar des infrastructures de marché, des Securities Services providers, ou encore des CIB, les Banques Privées sont pleinement concernés par CSDR.
On May 30th 2018, the European Parliament adopted the 5th directive (2018/843) on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AML/CFT). This new directive, expected to be transposed by the Member States by January 10th 2020 at the latest, comprises significant changes compared to the previous version adopted in May 2015 (2015/849).
Le 30 mai 2018, le Parlement européen adoptait la 5ème directive (2018/843) LCB/FT, un texte s’inscrivant dans la continuité de la 4ème directive adoptée en 2015.La transposition de la 5ème directive LCB/FT en droit national va néanmoins demander aux établissements financiers d’adapter leur organisation afin de mieux lutter contre le blanchiment d’argent et le financement du terrorisme.Quels sont les principaux challenges engendrés par cette nouvelle directive pour les institutions financières ?
The increasing cost of ‘know your customer’ resources within financial institutions is becoming a major strategic issue. One not to be neglected under any circumstances.
Basel 3 regulation aimed at providing a common level-playing field across all regions, business models and size. From a worldwide perspective, its primary objective is not increase minimum required capital but rather (i) to provide better comparability and harmonisation of regulatory playing field at worldwide level ; (ii) limit potential bias provided by internal model approach.
Les études d’impacts Bâle III publiées en 2019 ont mis en exergue l’ampleur des impacts quantitatifs, particulièrement en Europe. A l’heure de la transposition de ce texte, les institutions financières européennes s’interrogent quant à la pérennité de leur business model dans un environnement concurrentiel et économique challengeant.
CH&Co. propose une grille de lecture succincte des impacts du texte et un éclairage sur les perspectives et défis à relever pour la mise en œuvre de Bâle III.
Vous pouvez télécharger le document ci-dessous.
Depuis plusieurs semaines, les banques font connaître leurs craintes sur la transposition des règles mondiales de solvabilité négociées dans le cadre du Comité de Bâle. La raison ? Les nouvelles règles prudentielles dévieraient de leur objectif initial faisant notamment craindre un prix à payer trop fort et une baisse de leur compétitivité, dans un environnement toujours plus concurrentiel.
The aim of this paper is to present model risk situations and a methodology to measure and quantify the associated risk at model level, with different types of assumptions.
The goal of this research paper is to determine which states have the highest percentage of the crypto-owning population on a state by state level in the US.
The Directive on Administrative Cooperation (DAC) 6 imposes mandatory reporting for certain cross border transactions for taxpayers and intermediaries. The Common Communication Network will be set-up by the European Union as the mandatory automatic exchange platform.
What are the main challenges of this new directive?
Download our article below.
Bien qu’encore peu répandue, la formule d’agences bancaires franchisées intéresse actuellement un certain nombre d’établissements.
Le marché monétaire européen a accueilli un nouvel indice le 2 octobre : l’Ester, ou €STR. La transition est plus complexe qu’il n’y paraît, surtout pour les banques.
A new research led by Chappuis Halder & Co. and Coqonut intended to estimate the number of active crypto traders worldwide.
Contrary to cryptocurrency, which is a virtual currency with cryptography and based on blockchain technology, fiat currency is “legal tender” backed by a “central government”.
EMIR Refit brings key changes to certain technical aspects of EMIR like a new categorization of financial counterparties and a clearing obligation for specific assets by NFC+.
BMR compliance is required when contributing/calculating/administering to an index for the determination of the value of a financial product.
The regulators are now going to shift from implementation to control and supervision. What would be the most likely control points after Investment Advice?
SFTR article 4 will involve new reporting obligations which will have an impact on repos transactions and their related commodity financing techniques.
This 2019 booklet proposes ideas to “surf the token wave” in two ways…
After seven years of existence, the GRA team continues to explore the issues of risk quantification. This third booklet still demonstrates the perseverance of the GRA work and reflects the numerous questions the team faces daily.
This article focuses on Facebook Libra and its functionalities that should be considered in the near future. Patrick Bucquet, Marie Lermite and Ally Jo made a comparative analysis and determined 10 functionalities that Facebook should look at next.
Counterparty Credit Risk : Evolution of the standardised approach to determine the EAD of counterparties
This article focuses on the revised standardised methodology (SA-CCR) introduced by the regulator to compute the Exposure of derivatives for Counterparty Credit Risk management.
Chappuis Halder & Co. launches a new service which we have called Business Projects. Let’s hear Alexandre Hovette and Laurent Liotard-Vogt, Partners, to understand which clients’ new needs have given us the idea.
End to end innovation and augmented consulting are CH&Co.’s response to today’s fast moving world. Hear more in this video of our Partners Patrick Bucquet and Laurent Liotard-Vogt.
Is open banking a synonym for more services or more risks ? This new environment, where banks open up their services to third party providers, has definitely an impact on innovation.
We ask Partner Olivier Garcia whether compliance is seen as an asset or as a constraint. His answer comes very clearly : financial services should leverage compliance requirements and turn them into an investment to support the business.
Les robo-advisors sont devenus une réalité, tant outre-Atlantique qu’en France, comme le démontre notre dernière enquête. Quelques chiffres et tendances présentés par Yannick Gaillard, Partner de CH&Co. à Paris.
Chappuis Halder & Co. saw an acceleration of the awareness level on the UK market on the question of reference rate reform. Yet, things are only getting real now, as Olivier Garcia, our Partner in London states in this CH TV video.
A new serie of our Partner videos about CH&co. services.
Bien qu’encore peu répandue, la formule d’agences bancaires franchisées intéresse actuellement un certain nombre d’établissements.
DLT is a combination of existing technologies that together provide a trusted environment ….
Smart Automation can help optimize the current workforce and to rebalance the workload towards higher value-added tasks …
In our modern societies, we often take for granted the ease of access we have to credit and banking services …
Despite all testing, it is still a challenge to determine how the many complex parts of the genome work together in human health and disease …
In a rapidly changing environment where users expect real-time access to services …
RPA in the Financial Services industry can extend the creative problem-solving capabilities and productivity of human beings and …
Innovation is a lever to redesign a bank or insurance company, through all dimensions, not only products …
This article is an extract of our 2018 CH&Co. Fintank yearly publication on Innovation for Financial Services.
InsurTech – the sub-segment of FinTech addressing the current challenges and opportunities in the insurance market – is revolutionizing the classic business model of insurance with a focus on customer experience and accessibility …
Mobile Banks have raised more capital together than any other FinTech sector in Europe …
The digital revolution will completely reshape the Financial Services Industry, namely through Big Data and Robotic Process Automation …
CH&Co provides a response to the Basel Committee on Banking Supervision’s consultative document based on …
The objective of this article is to provide a new angle to the study of RWA density …
This CH&Co. GRA paper shows how the risk failure may come.
This CH&Co. GRA paper analyzes and studies the standardized approach of CVA Risk
A response to repeated requests from various players in the market.
This CH&Co.’ GRA paper introduces Basel II, the construction of risk weight functions and their limits in two sections
“Stochastic modelling of the loss given default (LGD) for non-defaulted assets”
A morning conversation to learn more about the CH&Co. innovation ecosystem.
How do consortiums contribute to innovation in financial services? The need to innovate and cost constraints have made this tool a particularly interesting one now, says Catherine Joly, COO of Chappuis Halder & Co.
The arrival of autonomous cars brings a plethora of new risks and players into the value chain that insurers now need to consider when designing products for the future.
Financial institutions may have to adjust their approach to financial crime risk management, even if they do not trade cryptoassets or currencies themselves.
Proptech, or commercial real estate, radically transforms the way investors and developers think about and use property as an asset class.
Several countries launched initiatives to reduce the regulatory burdens for start ups. From one regulatory authority to another, strategies differ.
Methodology that diffuses dynamically the stress on the credit rating scale while considering the performance of the credit score.
Banks’ product offering has become more and more sophisticated with the emergence of financial products tailored to the specific needs of a more complex pool of investors.
In a context, where banks are looking to improve their Return on Equity and supervisors strengthening their positions, this whitepaper aims to provide clues for optimizing Post-Scoring classification as well as analysing the relationship between the number of classes in a rating scale and the impact on regulatory capital for LDPs.
How to manage IRRBB considering the Monetary Policy and the new regulation. This white paper focuses on understanding how current market conditions (low interest rates) can affect banks’ revenues and profitability.
The purpose of the Fundamental Review of the Trading Book (FRTB) is to cover shortcomings that both regulations and internal risk processes failed to capture during the 2008 financial crisis.
An example of reinsurance products’ pricing using machine learning methods. Over the last fifty years, numbers and costs of natural disasters have not ceased to multiply. Given this phenomenon, insurers and reinsurers struggle to cover the associated losses.
Following recent financial crises and their disastrous impacts on the industry, regulators are proposing tighter monitoring on banks so that they can survive in extreme market conditions.
In the Basel framework of credit risk estimation, banks seek to develop precise and stable internal models to limit their capital charge.
Artificial Intelligence, a real opportunity to put the human being back at the heart of banking relationships and restore value.
Tokenization as a business driver! This paper, extract of the CH&Co. yearly publication on Innovation for Financial Services, aims to provide an overview of the burgeoning crypto exchange landscape from an innovation watch perspective.
Data: a source of future income and wealth? This is an extract of the CH&Co. yearly publication on Innovation for Financial Services.
Could initial coin offerings (ICOs) be the primary lever for kick-starting the blockchain evolution in financial services? Tokenization as a business driver…
Although the number of players in the cat bond market keeps growing, many obstacles hinder its development.
CH&Co. a eu l’occasion d’animer plusieurs ateliers et de contribuer à la rédaction du nouveau Livre Blanc publié en février 2019 par Finance Innovation.
Mieux Vivre fait le point sur le bitcoin et autres crypto monnaies et interroge Chappuis Halder & Co. pour rappeler ce qu’il faut savoir avant d’investir.