Australia

Details

  • Service: Advisory, Risk Consulting, Financial Risk Management, Topics, Managing Risk & Complexity, Financial Services Regulation
  • Industry: Financial Services, Banking
  • Type: Benchmarking study
  • Date: 28/02/2014

Evolving Financial Services Regulation

Evolving Financial Services Regulation
This series discusses the regulatory challenges facing the financial services industry and provides insight on implications and issues to consider.

Evolving Banking Regulation: Regulation driving business change (ASPAC Edition) 

The banking industry's existing business models are being substantially reshaped as the relentless march of the regulatory reform agenda continues. This report notes that successful banks will be those who can keep ahead of the storm by meeting the demands of customers, investors and regulators.

To succeed in this environment banks will need to address a series of challenges.


  • Banks will need to meet the current and prospective regulatory requirements of capital, liquidity and recovery and resolution planning (RRP).
  • Those organisations caught in the headlights of Basel 3 implementation many miss the wider picture as it potentially transforms into a Basel 4.
  • Regulatory requirements will force major structural change, including the split of global entities into a patchwork of small locally or separately regulated subsidiaries.
  • The regulatory bar has been raised in terms of what conduct risk means to a bank and how it is a core part of the strategy.
  • This change must also be accompanied by a shift in culture through tone from the top, policies, hiring practices, incentive structure and embedding values.
  • Data management is also fundamental – banks need to hold the right data to get close to customers, they have to meet increasing regulatory demands for reporting and disclosures and need to respond to supervisory concerns that banks do not have the right data.
  • Banks will also need to significantly upgrade governance risk management processes.
 

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Financial services regulation

Financial services regulatory change
Regulation can involve change and complexity, however many organisations use regulatory to underpin business transformation and drive change.

Banking

KPMG’s Banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.