With the publication of the draft implementing technical standards on disclosure requirements for Interest Rate Risk in the Banking Book (IRRBB), the European Banking Authority (EBA) has taken another step in completing the regulatory IRRBB framework. The standards include both a qualitative and a quantitative template.
Managing interest rate and liquidity risk on savings and current accounts is a hot topic for banks in 2021. Risk, ALM, and treasury managers have to navigate changing regulatory requirements, changing withdrawal behavior and deposit pricing strategies due to COVID-19, and decreasing market rates.
With the trend towards increasing computational resources and larger datasets, the application of machine learning (ML) in finance has gained attraction. Financial Institutions are interested in how and where ML models can be of added value in their business model.
Currently, for many organizations, operational resilience is at the top of the agenda of the Board and senior management. The COVID-19 pandemic clearly showed how vulnerable societies and organizations can be to unexpected and unforeseen events.
Innovative developments in cash management, combined with the application of cutting-edge technologies, ensure that the corporate treasury function is heading towards a truly real-time, frictionless and data-rich environment. For treasurers in the insurance industry, this article looks ahead to the final quarter of 2021 and explores the key trends to understand and monitor.