Perspectives

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 centres – EMEA, US, 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 a wide 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, the report states the ways in which banks can comprehensively re-evaluate current practices to turn this regulatory minefield into an opportunity for positive business transformation.

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.
     

Financial Services blog

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