Regulatory compliance requirements of CCAR and DFAST testing of minimum capital ratios

2020 ◽  
pp. 32-35
Author(s):  
Sophia Velez
Keyword(s):  
Regulatory Compliance ◽  
Minimum Capital ◽  
Compliance Requirements ◽  
Capital Ratios

Semantic Policies for Modeling Regulatory Process Compliance

2011 ◽  
pp. 311-336
Author(s):  
Marwane El Kharbili ◽  
Elke Pulvermueller
Keyword(s):  
Process Management ◽  
Business Processes ◽  
Regulatory Compliance ◽  
Information Systems Management ◽  
Policy Modeling ◽  
Compliance Requirements ◽  
Compliance Checking ◽  
Process Compliance ◽  
Abstraction Levels ◽  
And Control

Business process management (BPM) as a paradigm for enterprise planning and governance is nowadays a core discipline of information systems management. Growing up from the first process re-engineering initiatives in the 1980’s, BPM technologies now seek to span all of the organizational silos of enterprises, and also expand vertically from the strategy layers where visions and goals are defined to the lower data transaction layers. Ensuring the compliance of processes to the guidance and control provided to the business by regulations is an obligation to every enterprise. In this work, we motivate the need for automation in compliance management and propose the use of policies as a modeling concept for regulations. We introduce the CASE model for structuring regulatory compliance requirements as policies. Policies shall allow to model regulations at abstraction levels adequate to implementing platform independent mechanisms for policy verification. We describe the CASE model and explain how it can be used to structure and model policies extracted from regulations. This chapter also defines a policy modeling ontology that we propose as a language for formally modeling CASE policies. The basic CASE model and the corresponding policy modeling ontology support compliance of enterprise processes to regulations by enabling automation to compliance checking (verification). The utilization of the CASE method as well as the policy ontology is showcased using an example of resource access control in business processes.

The Compliance of IT Control and Governance

2016 ◽  
Vol 10 (1) ◽  
pp. 28-44
Author(s):  
Colin Lai ◽  
Hung-Lian Tang ◽  
J. Michael Tarn ◽  
Sock Chung
Keyword(s):  
Regulatory Compliance ◽  
Future Research ◽  
Gaming Industry ◽  
Case Study Methodology ◽  
Stage Of Development ◽  
Casino Gaming ◽  
Initial Stage ◽  
The Status ◽  
Compliance Requirements ◽  
Multiple Case

This study used a multiple-case study methodology in exploring the status of IT control in the casino gaming industry. The observations of this research should very much represent the overall status of the concerned issues regarding the casino gaming industry of Macao. Having attained a more complete level of IT control not only helps the company in satisfying the concerned regulatory compliance requirements, but also makes IT works more effectively for the companies in helping them to gain the competitive advantage in the fierce competitive environment in the gaming industry. The findings of this research can help the gaming companies to identify the potential enhancement areas of IT control. This study has captured the IT control status of the gaming industry at an initial stage of development in Macao. Further, the results can serve as a solid foundation for future research on the casino gaming industry and extending similar research to be conducted on other industries and government agencies, which are promoting the awareness of the importance of IT control.

scholarly journals Evaluating SMEs Growth Strategies: The Case Study of A Medium-sized UK Specialty Chemical Distributor

2016 ◽  
Vol 3 (2) ◽  
pp. 122
Author(s):  
Hendrik Frentzen ◽  
Evripidis Lampadarios
Keyword(s):  
Regulatory Compliance ◽  
Future Research ◽  
Growth Strategies ◽  
Organic Growth ◽  
Compliance Requirements ◽  
Small Business Growth ◽  
Chemical Distribution ◽  
The Uk ◽  
Past Experiences

The UK chemical distribution industry, a well-established, highly fragmented, subject to strong consolidation and significant part of the chemical industry, is a major contributor to the UK economy and employment. The ever increasing regulatory compliance requirements pose a significant challenge to all companies in general but more so to SMEs which have a strong presence in this industry. Even though there has been considerable research in the area of small business growth, best practices for SMEs in the chemical distribution industry are scarce. This is one of the few research papers that address this gap in knowledge in a case study context in the specific industry, arguing that a mix of inorganic and organic growth is the best way to achieve growth. Findings suggest that the strategy depends on the vision of the owner/manager, strategies in place, access to human resources and finance, past experiences, industry characteristics and company structure. Despite the methodological limitations of this study, this can be used as the basis for future research and to inform key stakeholders and policy makers.

scholarly journals Governance and performance in compliance versus non-compliance Chinese listed companies

2010 ◽  
Vol 6 (3) ◽  
pp. 31-41
Author(s):  
On Kit Tam ◽  
Monica Guo-Sze Tan ◽  
Helen Wei Hu
Keyword(s):  
Listed Companies ◽  
Regulatory Compliance ◽  
Systematic Research ◽  
Factors Affecting ◽  
Corporate Scandals ◽  
Chinese Listed Companies ◽  
Governance Practices ◽  
Compliance Requirements ◽  
And Performance ◽  
Compliance Versus

Cases of corporate scandals and the misconduct of publicly listed companies (PLCs) are growing amid rapid economic development in China. Systematic research on governance factors affecting these corporate misconducts and their consequences is however scant. This study compares the key governance characteristics of Chinese PLCs that were found to have contravened regulatory compliance requirements (i.e., “non-compliance” PLCs) to those that were not (i.e., “compliance” PLCs). Based on a comparison between 53 pairs of compliance - and non-compliance-PLCs over the period from 2001 to 2006, our results show that there are significant differences between the two. We found that ownership concentration is higher in compliance firms that also compensate their directors and executives at higher levels. Furthermore, the results suggest that sound governance practices benefit firms socially and financially, and an effective internal monitoring mechanism can further differentiate good companies from bad companies such that the good companies perform better.

scholarly journals Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study

2020 ◽  
Vol 13 (2) ◽  
pp. 28
Author(s):  
Sophia Velez ◽  
Michael Neubert ◽  
Daphne Halkias
Keyword(s):  
Delphi Study ◽  
Stress Test ◽  
Risky Behaviors ◽  
Capital Adequacy ◽  
Bank Holding Companies ◽  
Holding Companies ◽  
Minimum Capital ◽  
Bank Managers ◽  
Compliance Requirements ◽  
The 2008 Financial Crisis

Compliance measures emphasized in the Dodd-Frank Bill 2010, Section 165 is a response to the 2008 financial crisis, that requires large banks to maintain a minimum capital ratio. The Federal Reserve Bank (Fed) regulates capital of Bank Holding Companies (BHC) through compliance Supervisory Capital Assessment Program (SCAP) 2009 and Comprehensive Capital Adequacy Review (CCAR) 2011 annual stress test of capital. The Fed imposed a minimum capital ratio of 8% that has derailed the risk management objective of capital adequacy, as bank managers are forced to take on more risk to meet the capital ratio. This study concerns senior manager practices that can be effective in meeting compliance requirements posed by the Fed for BHCs. Through a qualitative e-Delphi study, 10 banking finance experts were convened to build consensus on senior manager’s practices that can be effective in meeting compliance requirements. Data were collected from three electronic questionnaires submitted through Qualtrics. Data were analyzed using theoretical triangulation, coding, and thematic analysis. Four important considerations were identified that could bolster compliance measures effectiveness: (a) emphasis placed on understanding regulatory consultant compliance, (b) maintenance of effective and independent compliance align to organizational objectives, (c) clear definition of data source for compliance analytics. These considerations of compliance practices may help senior bank managers reduce risky behaviors and investments that cause significant bank losses.

scholarly journals The Impact of Regulatory Capital on Risk Taking By Pakistani Banks

2019 ◽  
Vol 2 (2) ◽  
pp. 94-103 ◽  
Author(s):  
Muhammad Sajjad Hussain ◽  
Dr. Muhammad Muhaizam Musa ◽  
Dr. Abdelnaser Omran
Keyword(s):  
Developing Countries ◽  
Risk Taking ◽  
Implementation Process ◽  
Policy Implications ◽  
Capital Regulation ◽  
Regulatory Capital ◽  
Minimum Capital ◽  
Capital Ratios ◽  
Capital Regulations ◽  
The Impact

Objective - The objective of this study is to examine the relationship between capital regulation and risk-taking by the banks of Pakistan.  Design - This study was conducted on all the commercial banks of Pakistan and data were collected from the year 2005 to 2016.  Findings - This study concluded the significant positive relationship between regulatory capital and risk-taking by banks in Pakistan. The findings of this study play a key role in the implementation of capital regulations in the banks of developing countries.  Policy Implications - In the light of this study, the regulators must revise their implementation process of the Basel Accord capital regulations in the banks of developing countries. The prime intention of regulators are only on to maintain the minimum capital ratios but must be conscious of other important elements of capital regulation implications.  Originality - This study is one of the first attempts that investigated the crucial role of regulatory capital towards risk-taking in the Pakistani context.

scholarly journals ANALISIS DETERMINAN RASIO MODAL BANK BUMN DI INDONESIA

2016 ◽  
Vol 5 (2) ◽  
pp. 113
Author(s):  
Saifullah Saputra
Keyword(s):  
Exchange Rate ◽  
Credit Risk ◽  
Banking Sector ◽  
Time Series Data ◽  
Multiple Linear Regression Model ◽  
Series Data ◽  
Bank Capital ◽  
Minimum Capital ◽  
Minimum Capital Requirement ◽  
Capital Ratios

Capital aspect is the one very important aspect  in the banking sector,not only for business developing but also  to overcome the  various of risk. Inorder to keep the healty and stability of the state owned bank capital, the centralbank as monetary authority in Indonesia has determine the regulation aboutcapital healty. It looks from the minimum capital requirement that must beenobeyed by banking is 8%. This situation based on economy crisis case in 1997which has an impact on the banking sector. This study aims to analyze the effectof profitability, credit risk, efficiency, liquidity, exchange rate and inflation oncapital ratios of state owned bank in Indonesia. The type of this research aredescriptive and associative using time series data from the first quarter of 2004until the fourth quarter of 2015 with documentation data collected technique.Data were analyzed with multiple linear regression model, the prerequisite test(multicolinearity, autocorrelation and heteroscedasticity), t test, and F test. The result shows that (1) Profitability has positive and significant effect oncapital ratios of state owned bank in Indonesia. (2) Credit risk has positive andsignificant effect on capital ratios of state owned bank in Indonesia. (3)Efficiency has negative and significant effect on capital ratios of state ownedbank in Indonesia.  (4) Liquidity has negative and significant effect on capitalratios of state owned bank in Indonesia. (5) Exchange rate has positive andsignificant effect on capital ratios of state owned bank in Indonesia. (6) Inflationhas positive and not significant effect on capital ratios of state owned bank inIndonesia.

scholarly journals Basel Accord and Banking Competitivity

2016 ◽  
Vol 5 (12) ◽  
pp. 252-258
Author(s):  
Lassaad Jebali ◽  
Siwar Hmedi
Keyword(s):  
Risk Management ◽  
Side Effects ◽  
Risk Taking ◽  
Bank Lending ◽  
Capital Requirements ◽  
Credit Crunch ◽  
Basel Accord ◽  
Minimum Capital ◽  
Minimum Requirements ◽  
Capital Ratios

The first Basel Accord 1988 focused on the adoption of fixed minimum capital requirements, which led some banks to maintain higher capital ratios than they deserve some other banks succeeded in limiting risk-taking relative to capital as intended. Banks which didn’t succeed the risk management have been able to take actions to reduce their effectiveness, either by shifting to riskier assets within the same weighting band or through capital arbitrage. It looks at two possible side effects. Firstly, whether in some periods capital requirements may have had the effect of constraining bank lending thereby causing a credit crunch. Secondly, the introduction of fixed minimum requirements for banks affected competitiveness with relative forms of intermediation.

scholarly journals Compliance with Environmental Regulations through Complex Geo-Event Processing

2017 ◽  
Vol 20 (2) ◽  
Author(s):  
Federico Herrera ◽  
Laura González ◽  
Daniel Calegari ◽  
Bruno Rienzi
Keyword(s):  
Geographic Location ◽  
Regulatory Compliance ◽  
Event Processing ◽  
Environmental Laws ◽  
Model Driven ◽  
Compliance Requirements ◽  
Environmental Requirements ◽  
Model Driven Approach ◽  
Different Sources

In a context of e-government, there are usually regulatory compliance requirements that support systems must monitor, control and enforce. These requirements may come from environmental laws and regulations that aim to protect the natural environment and mitigate the effects of pollution on human health and ecosystems. Monitoring compliance with these requirements involves processing a large volume of data from different sources, which is a major challenge. This volume is also increased with data coming from autonomous sensors (e.g. reporting carbon emission in protected areas) and from citizens providing information (e.g. illegal dumping) in a voluntary way. Complex Event Processing (CEP) technologies allow processing large amount of event data and detecting patterns from them. However, they do not provide native support for the geographic dimension of events which is essential for monitoring requirements which apply to specific geographic areas. This paper proposes a geospatial extension for CEP that allows monitoring environmental requirements considering the geographic location of the processed data. We extend an existing platform-independent, model-driven approach for CEP adding the geographic location to events and specifying patterns using geographic operators. The use and technical feasibility of the proposal is shown through the development of a case study and the implementation of a prototype.

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