Global bank booking models

Insights

Global bank booking models

Making a success of structural reform

At a time of heightened global regulatory scrutiny, global banks’ booking models are under increased pressure from the authorities. This report, launched in partnership between Deloitte’s three regulatory strategy centers – EMEA, U.S., and APAC – critically assesses booking models in the new regulatory and supervisory environment.

Overview

Global bank booking models: Making a success of structural reform looks at what booking models are, and why they are in the spotlight. It considers the full range of regulatory challenges, with a particular focus on resolution planning and structural reform initiatives.

The report argues that an in-depth understanding of a bank’s booking practices can provide crucial insights into its business and operating model. In addition, we consider the ways in which banks can comprehensively re-evaluate current practices to turn this regulatory minefield into an opportunity for positive business transformation.

While changes to booking models have a less direct impact on Asian banks, it will affect how they deal with their global peers or parent companies. The impact may also increase in future as recovery and resolution discussions in the region become more aligned with global trends.

(English version)

Key findings

  • Supervisors are asking direct and challenging questions of a number of banking groups’ booking practices, and are set to become more systematic in their scrutiny of wider industry practices.
  • Resolution planning and bank structural reform regulations empower regulatory authorities to impose changes on banking groups’ legal and operational structures.
  • Booking model changes are often made as corollaries of other decisions, but adopting a group-wide strategic booking model perspective can generate insights into business and operating models.
  • By comprehensively reviewing booking practices, banking groups can not only pre-empt supervisory interventions, but can also derive business benefits from the increase in transparency such reviews can generate.

The Deloitte Asia Pacific Centre for Regulatory Strategy

Through regular dialogue with regulators and financial institutions across the region, and in collaboration with Deloitte’s global network, including its existing centres in EMEA and the U.S., the Deloitte Asia Pacific Centre for Regulatory Strategy provides clients with critical insights and advice on managing the aggregate impact of regional and international regulatory policy. Click here for more information on the Centre.

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