Next Generation of AML Surveillance System: BBA’s Approach

Financial crime driven by money laundering has reached global and stratospheric proportions. Funds laundered are estimated to run into trillions of dollars annually, estimated to be between two to five per cent of the world’s GDP.

3rd Quarter 2022: Loan Book Watchlist

The confluence of macroeconomic and geopolitical factors, such as, inflation, supply chain disruption, higher interest rates, an overheated housing market and Russia’s invasion of Ukraine contribute to the stagflation pressures in Ontario and other Canadian jurisdictions

Newsletter: Featured Insights Series - Issue 7 | July 04 2022

Post-COVID knock-on risk, relating mainly to inflation due to the supply-chain bottlenecks, and Evergrande/China risk manifested relatively higher severity during the 3rd quarter

newsletter, thirdquarter, loan, book

Business Case for Granular Ratings Scale

The amount of Expected Credit Loss (ECL) necessary to support a credit portfolio depends on the probability distribution of the portfolio loss.By using the aggregate credit quality as a proxy for the ECL, the portfolio is subjected to risk arising from the loss of granularity.

2022 A Major Policy Shift

2022 will be a major turning point for central bank policy, growth, and inflationary pressures.While the environment will be more volatile and challenging, institutional risk appetite will need to be recalibrated in anticipation of risk hotspots and particularly mindful of early warning signals.

Digitizing Domains: Trends and opportunities for Canadian financial institutions

Most mid-sized and large banks are running the core banking software that is more than 30 years old. In the intervening decades, we witnessed the internet transform the world, commerce move to the mobile device and computing move to the cloud.

Transforming Core Banking Systems

Core transaction processing engines - or “core banking systems”- are at the heart of IT architecture and are increasingly important not only in terms of pure cost and performance but also in terms of processing transactions in real time, being able to stitch together partnerships with tech companies, e.g., allow API access.

Liquidity Coverage Ratio: Top-down Stress Testing

The Basel Committee on Banking Supervision (BCBS) has developed two standardized liquidity measures intended to gauge and regulate liquidity risks. The first measure is called the Liquidity Coverage Ratio (LCR) and indicates the short-term liquidity risks.

Newsletter: Featured Insights Series - Issue 6 | July 12 2021

Rolling public health restrictions, the ebb and flow of COVID-19 infections have forced Ontario to a K-shaped recovery. Certain sectors continue facing difficulties whilst other areas are largely insulated such as retail, manufacturing, construction, the resale homes and related sectors.

newsletter, secondquarter, loan, book

Newsletter: Featured Insights Series - Issue 5 | May 07 2020

Ontario’s 2020 macroeconomic results tell us that the worst has been avoided. Initial estimates suggested contraction in the GDP by 9.0% vs. 5.7% (realized). Better than expected results can partially be attributed to red-hot real estate market as was evidenced by growth in housing starts.