Capital Management

Capital costs, allocation & returns

In an ever increasing and complex regulatory agenda, CFOs in financial services are under increasing pressure to optimize their risk and capital management capabilities. A financial institution’s ability to respond will determine its ability to align strategy, risk and capital and to produce competitive returns.

Effective capital management is vital to withstand the forces of an adverse external environment. Poor capital management destroys shareholder value and can even imperil the very survival of the business.

Solutions from StraitsBridge

CapitalManagementWe assist CFOs in the evaluation, development and implementation of sustainable capital management strategies that help maximize shareholder value through an effective, integrated operating model for capital management.

We bring experience in capital management frameworks involving ICAAP (Internal Capital Adequacy Assessment Process), stress testing, reverse stress testing policies and methodologies, bringing the components together in a clear and consistent manner.

Key Areas of Delivery

Overall governance Develop and implement a roadmap for financial institutions to move from measuring, managing and monitoring the different risks separately towards the establishment of a comprehensive capital management framework

Interest rate risk Develop a framework for interest rate risk management and economic value measurement through implementing best practices in the context of our clients’ organizations
ICAAP Assist clients in establishing their ICAAP through various levels of support, including high-level reviews, in-depth process readiness assistance and initial establishment of a regulatory compliance ICAAP framework

Basel III Help clients develop a capital plan under the new Basel III regime which considers potential impact on capital level, liquidity position and overall key financial metrics. The plan also contemplates capital and liquidity management strategies to be employed, so as to ensure compliance with the new requirements, including changes in capital models and related infrastructure

RWA management Under Basel III, many institutions will see an increases in risk-weighted assets (RWA) from current levels. The RWA optimization program includes assessing the size of the capital increase impact, capital allocation, risk-adjusted returns and identifying potential RWA savings

Contact us for more information
Email us:
Call us on: +65 6408 0501

Share this

Basel III

Tough new rules under Basel III and a host of local regulations require financial institutions to increase capital, enhance liquidity and reduce risk.

The resulting adverse impact on returns on capital and higher cost of business impacts shareholders and customers alike.

Further, greater scrutiny by investors, regulators and other stakeholders regarding balance sheet usage is expected to sustain.

Financial Institutions will need a new roadmap towards meeting Basel III’s requirements prior to the proposed deadline of January 2019 for full implementation, one that should help establish both short and long term goals for upgrading capital and liquidity management strategies and practices.

Comments are closed.