Goldman Sachs Transaction Banking’s Post

Join me, John Geiringer and my colleague Zain Tariq on Feb. 22 for a deep dive into the regulatory environment and hot button issues facing banks. We'll discuss how the regulatory landscape and competitive environment has changed since the liquidity crunch in the spring of 2023, what drives banks to brink and how regulators react to troubled institutions as well as our outlook for bank #deposits, #liquidity and commercial real estate exposures. #CRE #regulation #banking Register now: https://ow.ly/WkHj50QxQF6

The Basel Committee on Banking Supervision (BCBS) defined two distinct methodologies for calculating banks’ capital requirements for credit risk. Based on a thorough assessment of the asset composition of banks’ balance sheets and their business models,

In a short clip below, Arnab Das, Global Market Strategist at Invesco, speaks about the impact of higher rates and weakness in the banking sector. He believes “the problem that they’ve had in the banks is mainly in interest rate losses.” Watch the full video at https://lnkd.in/d-8PadWH and stay tuned for more Horizon Bites.

When trades fail to settle, it is a giant pain for both sides and a major form of operational risk, write Farah Khalique and John Crowley. But are banks actually getting better at settlement? Goldman Sachs recently reported a “significant improvement” in achieving a “greater than 99%” same-day settlement rate. But what else is driving better settlement risk rates? As US banks prepare to shorten trade settlement times to T+1 by May 28 this year, they are looking closely at their post-trade processes to remove inefficiencies. Insights from Björn Storim, MBA, FRM, MRICS, Cécile Nagel, CFA and Ben Pott from BNY Mellon, plus The Depository Trust & Clearing Corporation (DTCC), Clearstream and European Securities and Markets Authority (ESMA). Analysis via Pardeep Cassells at AccessFintech. Read more 👉 https://lnkd.in/dSUQq9f4 #settlements #settlementservices #bankingindustry

Are banks actually getting better at settlement? AccessFintech's Global Head of Buyside Customer Experience, Pardeep Cassells spoke with Banking Risk and Regulation, commenting on CSDR cash penalties and how their upcoming re-fit impacts settlement efficiency. “Banks will be under greater pressure to improve settlement rates further, both from a liquidity and balance sheet perspective, but also from a client service perspective as their asset manager. Clients need timely and accurate transaction handling,” said Pardeep. You can read the full article below. #Tplus1 #T1 #Settlements #CSDR

Embark on a journey to the core of finance, unravel the nuances of global economic dynamics, and emerge as a Central Banking expert. Position yourself for excellence in the world of financial leadership with IIBF. 🌍🏦 #IIBF #CentralBankingExpertise #financialleadership

Since the observation below in April, the regional banking index has indeed rallied roughly 10%. Regardless, the % of regional banking exchange traded fund shares short-sold continues to register at an extreme elevated level of more or less 90% which begs the question once again, are the short-sellers overstaying their welcome? (5/13/24)

After a somewhat turbulent year for bank M&A in 2023, what’s in store for 2024? Is bank resolution driven M&A safely behind us? Do bank boards have M&A on the agenda for this year? In the latest in our M&A Outlook series, we explore five potential trends for banking M&A: https://ow.ly/YVHn50QBfrG

Reflecting on the financial landscape: U.S. Banks closed fiscal 2023 with a staggering $192.46 Trillion in derivative notional on their books. Among the 1,185 reporting banks, a mere four institutions account for 87.4% ($168.26T) of these open contracts: 🏦 JPMorgan Chase 🏦 Bank of America 🏦 Goldman Sachs 🏦 Citigroup This data underscores the concentrated nature of derivatives exposure within the banking sector. It's crucial for stakeholders to understand and monitor these dynamics for informed decision-making.

Interest rate risk in the banking book (IRRBB) is by nature a complex risk to assess. It is part of an ‘enhanced’ Pillar 2 framework, generally relying on modeling approaches that can be quite heterogeneous depending on jurisdictions' market structures.