Periods of crisis such as that caused by the COVID-19 pandemic call for decisive action from financial authorities to provide economic support and maintain public confidence. Central Banks need to act as the first line of defense to protect economies and stimulate the recovery of trading, commercial and financing activities. While major efforts have been directed to deal with the crisis, Central Banks also need to maintain and enhance their internal controls and risk governance – supervising a banking system on the edge of an accelerated era of transformation is a not a simple task.
Based on experiences working with central banks around the world, the KPMG Central Banks network outlines 10 key priorities for central banks as they continue to guide and lead in the recovery. The publication also includes case studies of how KPMG firms have been helping central banks with their transformation projects and formulating strategies that further bolster risk management and performance in extraordinary times.
Is another patch really a solution? Central bank can achieve the institutional resilience and flexibility that optimized digitization provides. Thoughtful governance and deliberate action are required to make progress towards a world class IT operational model.
Central banks can have an important role in the greening of the financial system, delivering sustainable finance and taking account of ESG risks. Long-term, forward-looking and judgment-based supervision is needed to examine the financial risks.
Central banks are no strangers to managing risk, but the bar for best practice on internal risk management and control is being raised. Central banks should be holding their own practices to account.
Good governance is not just a box-ticking exercise for central banks; it underpins the integrity and stability of a country’s financial system. As the standard bearers of quality, central banks need to visibly raise the bar in terms of independence, expertise and professionalism to help ensure the smooth running of the wider economy.
Bitcoin and other altcoins have been around for more than a decade now, yet they haven’t replaced traditional currencies, money systems and banks. Trying to create an electronic alternative to cash can seem like squaring the circle.
How Central Banks are transforming their posture to deal with cyber risks in the financial services system. Several initiatives have started to demonstrate commitment to cybersecurity risk management and to provide ways to reduce central banks exposures.
Central banks have been at the heart of discussions and new rules on regulating and supervising commercial banks. Through monetary policy and macro- and micro supervision, central banks can steady the economic conditions.
Increasing quality and efficiency with a view to becoming a high-performance and innovative central bank. A key objective is to build a human resource framework that has the leadership skills to follow through the strategic values of the bank.
The harmonization of financial reporting across the globe is already a reality for most countries — following or converging to International Financial Reporting Standards (IFRS).
Recent incorporation of increasingly rigorous mathematics into the science of economics has turned financial mathematics into a separate branch of learning and enhanced the quantification and measurement of risk.
KPMG Central Bank network brings together knowledge and experience from specialists who works with central banks around the world, advising them and providing strategic input on tackling their unique challenges. KPMG’s Regulatory Centers of Excellence also help drive and shape the latest regulatory developments and provide cutting-edge advice and support in supervising compliance.