As the pace of business quickens, is your organization keeping up?
Spinnaker Consulting Group helps Fortune 500s get to where they’re going, faster.
A decade ago, banks expected regulators to arrive for scheduled routine examinations, where they would conduct external testing and point out any problems they uncovered. But as we look at today’s regulatory landscape, the scenario has flipped. Across the industry today, regulators increasingly expect banks to have robust risk management frameworks to proactively catch and resolve issues before anyone else identifies problems – and especially before any customer impact occurs.
The Big Picture Regulations might be written in black and white, but how they are interpreted is up to bank leadership. In the case of a Top 30 bank, its interpretation of the Military Lending Act meant that it could not allow active military members in collections to pay by remotely created checks (RCCs). However, ongoing operations monitoring revealed that a third-party supplier, intended to help take online payments, was at times generating checks that were out of compliance.
As the world braces itself for the economic impact of COVID-19, banks are looking to credit risk models in an attempt to quickly understand and forecast the effects of such rapid change. But putting these models to work is no easy task.
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