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How is artificial intelligence changing the banking industry? Will bank analysts be replaced by A.I.? And is that a bad thing? A former Credit Suisse analyst and a veteran European bank expert weigh in on the latest episode of BTN Pod.

A few weeks ago, New York Community Bancorp (NYCB) was downgraded to below investment grade status. The fears of a  continuation of the regional banking crisis have been mounting. Early last week, its stock dropped sharply down, going below $2 per share though it recovered slightly after a $1B capital injection (see Figure 1). The…

It sounds like the title of an action-staved Marvel movie. Yet “Basel III Endgame” is still managing to set pulses racing – at least among regulators and bank risk managers. Along with the final rule for the Fundamental Review of the Trading Book (FRTB), and other planned or proposed regulations – including multiple stress tests,…

From natural disasters to financial ones, regulators and governments are almost guaranteed to respond in some capacity. But whether it’s mothballing nuclear power stations, or mandating tougher capital requirements for financial institutions, responses often falls short – just look at the meltdowns involving Silicon Valley Bank and others last year. So what should risk managers…

What can CROs learn from airline pilots? Quite a bit. Pilots have to know how to take their plane to safety no matter what. In training, they need to familiarize themselves with all possible situations, so when they’re flying passengers or cargo for real, they’re ready for anything – including the unexpected. Were risk managers…

It is, according to the FT’s U.S. Editor-at-large, Gillian Tett, one of the smartest ideas to emerge in finance for a long time”. The idea in question is “reverse stress-testing”, and in the words of Fed vice-chairman, Michael Barr, who oversees supervision, it works like this (as quoted by the FT): “Instead of thinking of…

Henry Ford famously remarked that “a customer can have a car painted any color he wants as long as it’s black”. Whether the founder of the eponymous car-maker uttered those words is a question for historians. And in those early days of driving, a one-size-fits-all approach was probably the most efficient way to make the…

“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly.”” These lines, from Ernest Hemingway’s The Sun Also Rises, could just as easily apply to Silicon Valley Bank (SVB) – except that SVB could have avoided its fate, if only it had prepared for a scenario where rising inflation would have…

On HBO’s The Last of Us, much of humanity has been zombified by a fungus that spreads like, er, a virus? In economic crises, liquidity risk can do the same, leaving a trail of credit crunches and severe downturns in its wake. To prepare for this possible scenario – and other extreme events – banks must…

After three years of pandemics, bear markets and war, what on earth could 2023 have in store? Anyone who tells you they know the answer to that question is being economical with the truth. Even something as mundane as high inflation, and its impact, has the potential to trip up today’s professionals, many of whom…

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