This blog tries to answer some very simple questions on what banks do and why; and what those of us involved with bank capital, regulation and governance actually do all day; and why.

This doesn’t just mean high street banks but the broad definition of bank: wholesale banks, brokers, investment firms, funds, advisory boutiques, etc.

One way or another they’re all doing intermediation between people who need capital and people who supply capital. Which in economic terms is what it’s all about.

There are huge simplifications in this story but I hope you will bear with them. It is based on an imaginary conversation with an inquisitive pre-teen who I bet now wishes he had never asked the question…

Read More

A quick round-up of key announcements and developments in financial risk and regulation: from 1st January to 26th May 2016 # (most recent first).

The articles in this blog do not constitute advice, but please contact Prism-Clarity for further information, including where to get the best advice.

Key PRA and FCA announcements:
12th May 2016: PRA Liquidity Consultation
9th May 2016: FCA Sandbox
5th April 2016: FCA Business Plan 2016-17
7th March 2016: New Senior Manager Regimes

Key Basel announcements:
25th April 2016 (revised from 6th April): Leverage Ratio
21st April 2016: Interest Rate Risk in the Banking Book
24th March 2016: Credit Risk RWA and IRB
4th March 2016: Operational Risk
14th January 2016: Final FRTB Rules

# Future editions will cover a straight quarter: next June to August 2016

Read More