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Q2 2020

Ian Nelson, Head of Banking & Capital Markets, and our banking team have compiled a collection of KPMG's latest publications and articles which focus on developments in, and issues facing the banking industry. 

COVID-19 update

KPMG has produced a significant body of COVID-19 related content, which can be accessed by clicking here. For your convenience we have highlighted below several resources that may be of particular interest. Q2 2020 has been dominated by the spectre of COVID-19 and this has been reflected in the focus of the regulators. The impact of the pandemic on the banking and capital markets sector is still to be fully quantifiable. Institutions within Europe now have to ascertain what areas they must address in order to successfully mitigate the potential damage that may result from the crisis.

General Considerations 

There is an ever-evolving landscape to be traversed over the coming months and years and it is imperative that the sector reacts accordingly and in a timely manner to this change from an operational and strategic perspective. KPMG has produced a series of thought leadership pieces and webinars to provide some insight into the thoughts of industry leaders and how they see the sector developing into such an uncertain future.

KPMG has also created an info bank of a series of pieces produced by the ECB Office to help our clients respond to challenges in the present and prepare for the future and new reality. This is supplemented by the Horizons magazine which looks at the impact on the sector and breaks down the regulatory response.

Mapping and quantifying uncertainty 

COVID-19 and the associated containment measures being taken have created significant uncertainty. Banks, insurers, asset managers and other financial services companies need to react in an agile manner as these events unfold in order to fully understand and anticipate what they mean for their business. KPMG has produced an article examining how financial modelling can be used to help understand potential crisis impacts.

Audit

The COVID-19 pandemic has impacted society and economies on a scale not experienced for several generations, with senior management teams across the sector looking to navigate these troubled times. As is the case with all areas of organisations, the uncertainty and change arising from the pandemic has fundamental implications for Internal Audit Functions and how they fulfil their mandate, not just in the short but also the long term.

Privacy Rights

The COVID-19 pandemic has required businesses to rapidly adapt their working models, sometimes at the cost of privacy rights.  KPMG has been thinking about the return to work from the COVID-19 crisis and has set out some practical steps our clients can consider.

Operational Resilience

Operational Resilience is a topic which has been at the forefront of most actors within the sector in the past year and with the impact of COVID-19 reverberating throughout the sector it will become even more important in the years to come. KPMG has examined the impact of COVID-19 on operational resilience, cyber risk and finance transformation in the asset management sector, but the lessons are equally important for all financial services institutions.

Regulatory Developments

KPMG released a webinar, in which discussion is focussed on the recently published regulatory priorities and workplans, and we share our insights on what to expect in 2020. The webinar covers a range of topics, including credit risk, operational risk, data, systems and reporting disclosures, stress testing and strategy.

The EBA’s Final Report on the Guidelines on loan origination and monitoring (the Guidelines) are the new standard for credit underwriting in Europe. These Guidelines have the objective to improve the overall credit risk management practices in Europe and to ensure more robust, prudent and uniform lending standards between banks and EU jurisdictions. The Guidelines were released by the EBA during Q2 2020 and implementation by banks is expected from 30 June 2021.

For more information on how KPMG can help with assessing the impact of regulatory developments please visit the regulatory consulting homepage.

How can KPMG help?

KPMG has a large team of professionals with extensive knowledge and expertise in Financial Services, Banking, Aviation Finance and Leasing, 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.  

Useful links

  • KPMG produce the Horizons Newsletter which explores the latest developments in Financial Services.
  • KPMG ECB Office produce a quarterly newsletter called SSM Insights which provides news and insights into issues relating to the Single Supervisory Mechanism.
  • KPMG’s Insights homepage provides our latest research and thinking on key boardroom issues for you and your business.
  • KPMG’s EMA Financial Services Risk & Regulatory Insight Centre provides insights into the implications of risk and regulatory change.