Thought Leadership

Thought Leadership

The BTRM Thought Leadership series is designed to bring to light latest thinking on the future of banking and finance, including ideas and innovations that will enable the markets to serve consumers and society better. Recognising that finance is not an exact science and is as much an art, we welcome qualitative articles aimed at practitioners interested in a best-practice and honest approach to banking. Articles may focus on any area of economics, finance and banking and should be between 1500 and 3500 words. We encourage accessibility, transparency and clear language.


Template Board Risk Appetite Statement

by Professor Moorad Choudhry

Ahead of the publication of Moorad Choudhry's book "Anthology: Past, Present and Future Principles of Banking and Finance", we present an extract from that publication which is a recommended template Board Risk Appetite Statement, as formatted for the hypothetical commercial bank "ABC Bank Ltd". An explicit Board Risk statement that specifies both quantitative and qualitative risk limits is the first step to robust and long-term sustainable balance sheet management. 

https://education.wbstraining.com/mod/resource/view.php?id=2561

 


Bank Liquidity and Capital Best-Practice Principles, 2-Chapter e-Minibook, Feb 2018

by Professor Moorad Choudhry

With the publication last month from BCBS of the final chapter in Basel III, the key part of which confirmed the 72.5% output floor for RWAs applicable to any bank that applies an internal ratings based approach, firms can now proceed with their final form capital and liquidity management and planning, since every piece of the puzzle is now in place. Of course the core tenets of Basel III have been known since 2010…in that regard, and in anticipation of the publication next month of Moorad Choudhry Anthology, we present Chapters 12 and 16 from his earlier book The Principles of Banking. The first chapter discusses the liquidity risk management aspect of Basel III and its impact, while the second chapter considers both the capital and strategy-setting impact of that regulatory directive. While some banks are affected more than others, there is no doubt that every bank will wish to structure as optimised a balance sheet as possible. 

https://education.wbstraining.com/mod/resource/view.php?id=2562

 


Bank Treasury Best Practice: 

BALANCE SHEET OPTIMISATION IN THE ERA OF BASEL III

by Team BTRM


Strategic ALM and Integrated Balance Sheet Management: The Future of Bank Risk Management

by Professor Moorad Choudhry

The traditional approach to asset-liability management (ALM) practice in banks operated as a reactive process following product origination by the customer-facing business. In the Basel III era a more proactive approach to ALM is required, in order to manage the balance sheet from an effective viability and sustainability standpoint. The article describes proactive “Strategic ALM” discipline and its implementation process. 
Taken from The European Financial Review, Aug-Sep 2017 (http://www.europeanfinancialreview.com/?p=17469).

https://education.wbstraining.com/mod/resource/view.php?id=2310

 


 

De-Stress Tests for Strategic Treasury

by David Castle
May 2017

https://education.wbstraining.com/mod/resource/view.php?id=2219

 


 

Hypothesis: Risk, like Mass and Energy, Can Neither be Created nor Destroyed

Discuss, CISI, The Review of Financial Markets, issue 13, p6-8, Quarter 2, May 2017.

by Q G Rayer and W Dickson (2017)

This article was originally published in the CISI members’ magazine The Review.
Republished with permission.
https://education.wbstraining.com/mod/resource/view.php?id=2197

Courtesy of P1 Investment Management
https://p1-im.co.uk

 


 

Finance and Financial Economics

by Pablo Fernandez, University of Navarra - IESE Business School

Reproduced with permission from SSRN. First published 30 Jan 2017.
https://education.wbstraining.com/mod/resource/view.php?id=2001

 


Analysing and Interpreting the Yield Curve

by Professor Moorad Choudhry

A golden oldie by Professor Moorad Choudhry from his series of internal presentations at RBS Global Banking & Markets during 2011...
https://education.wbstraining.com/mod/resource/view.php?id=1993

 


Decoding Distress

by Jaafar Hussain, VP and Quantitative Analyst at Bank ABC, Bahrain
February 2017

Given recent news surrounding Deutsche Bank and the speculation about its financial position, Jaafar Hussain, VP in Market Risk Management at Bank ABC explains the framework that the bank uses to monitor the financial health of such financial institutions.
https://education.wbstraining.com/mod/resource/view.php?id=1989

 


Best-practice Funds Transfer Pricing Principles

by Professor Moorad Choudhry
January 2017

https://education.wbstraining.com/mod/resource/view.php?id=1981

 


Basel III LCR is a business model changer: How will it impact your bank?

by Professor Moorad Choudhry
December 2016

Compliance with Basel III LCR carries implications for banks beyond merely a robust liquidity management regime.
Professor Moorad Choudhry considers some wider issues…
https://education.wbstraining.com/mod/resource/view.php?id=1963