Welcome to Banking News, the KPMG Ireland Quarterly Banking Newsletter, which has been designed to bring together useful insights and developments that are relevant to the banking industry.
We hope you find the articles below of interest. If you would like further information on any topic or have any questions, please feel free to contact any member of the KPMG Banking team.
Operational Resilience and Outsourcing
KPMG has produced several thought leadership pieces in this area which considers how regulatory perspectives on operational resilience are developing, how the landscape has shifted as a result of COVID-19 and what financial services firms can do now to strengthen their operational resilience through the recovery and beyond.
The regulatory focus in the banking and capital markets sectors on operational resilience is all the more apparent with the recent publication of the BCBS Principles for Operational Resilience which aims to increase banks' capacity to withstand disruptions due to potentially severe adverse events. Alongside the operational resilience principles, the BCBS has published a revised version of the Principles for the Sound Management of Operational Risk (PSMOR).
In Ireland, the Central Bank of Ireland have also been signalling to the banking sector that there will be an increased emphasis placed on operational resilience with the publication of two Consultation papers on Cross Industry Guidance which cover Operational Resilience and Outsourcing.
For more information on how KPMG can help, please contact Ian Nelson.
KPMG Ireland have been ever present in the conversation around the impact of the vast number of sustainable finance and climate, environmental, and social governance (ESG) regulations which have been published over the recent past. We continue to track the development of the EU's suite of rules relating to sustainable finance, as outlined in Sustainable Finance: a regulatory imperative.
In the Assurance over ESG disclosures article, KPMG speak to the global challenges such as climate change, biodiversity loss and social issues which are increasingly core issues for banking institutions. A clear understanding of the nature of these risks and the drivers of value is essential for resilient business and sustainable investment decisions.
Regulators around the world are driving massive change to the manner in which the banking and capital markets industry interacts with sustainable finance. The Financial Stability Board (FSB) has issued a report on the Implications of climate-change risks for financial stability and on mechanisms that might amplify the effects of the risks or their cross-border transmission. The BCBS have signalled that climate risk is to be a key factor in its regulatory considerations in the future, with the publication of two reports on climate-related risks: Climate-related risk drivers and their transmission channels and Climate-related financial risks.
Senior Executive Accountability Regime
KPMG Ireland continue to be a leader in thought leadership in the developing Senior Executive Accountability Regime in Ireland, driven by our Risk Consulting Practice. We have produced an article outlining the preparation required for the Individual Accountability Framework, which incorporates many of the elements introduced by the UK Senior Manager and Certification Regime (SMCR) and includes the Senior Executive Accountability Framework (SEAR).
KPMG Ireland has recently released a piece of thought leadership which outlines the firm’s approach to organisational culture. This approach promotes the view that people and risk are closely intertwined, and a robust risk culture is strongly influenced by a well embedded organisational culture and vice versa.
We have also taken note of the New Consumer Agenda published by the European Commission in November 2020, which provides a consolidated view for Consumer Policy within EU member states from 2020 to 2025. The Agenda sets out the means to protect consumers while also ensuring they can benefit from the single market and are enabled to participate in the green and digital transition. We will be releasing a series of publications discussing a number of the key topics above (and other consumer related topics) as part of our consumer reform series.
KPMG have also recently produced a paper which addresses Accelerating Digital Finance. The paper looks at how the financial services industry – both existing firms and new market entrants – are being called upon to deliver digital finance, to embrace its benefits and to manage the risks arising from new technologies, digitalisation, and data handling.
As the impacts of Brexit are slowly being revealed, we have produced Post-Brexit: Relocating to the Euro Area which takes a close look into the main challenges and priorities of banking institutions relocating or expanding in the Euro Area. It focuses on the supervisory implications of relocation, as well as on the key priorities outlined by the ECB since the Brexit vote.
How can KPMG help?
KPMG has a large team of professionals with extensive knowledge and expertise in Financial Services, Banking, Aviation Finance, Insurance and Asset Management. KPMG Ireland can leverage a network of multidisciplinary professionals, stretching across Europe and beyond. Supported by this global network, KPMG Ireland can provide a broad range of support, advice and guidance on how to address the challenges you face.