Optimisation under regulatory constraints

Article

Optimisation under regulatory constraints

KPIs and dashboard

The recent wave of new regulation (including CRR/CRD IV, EU mortgage directives, MIFID II, etc.) is considerably changing the rules of the game for the banking industry.

Executive summary

Basel III alone forces banks to manage additional regulatory ratios in parallel, which are highly interconnected — and this of course also impacts balance sheet and profitability ratios. The new requirements for capital and liquidity in particular will force banks to rethink their business strategy.

Gaining the right insights into this complex system (i.e. the interaction between balance sheet, capital, liquidity and profitability) will be a key success factor in this new era, and a major requirement for dashboards used by senior management.

In order to ensure profitability from a business perspective, the balance sheet needs to be optimised, taking into account all regulatory constraints.
 

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Inside magazine issue 5, June 2014

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).
 

PDF file - size: 4.2mb
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