creating value
for Banking

The ADC/IPRE classifications under CRR III increase the capital costs of credit institutions due to their associated risk weightings and drive up costs (unnecessarily). We believe that precise classification, correct risk weighting and pricing tailored to this are crucial levers for intelligent overall bank management.

The success of the digital euro will not be determined solely by its technical architecture, but above all by how seamlessly it can be integrated into everyday payment situations. This raises a key strategic question for banks: which payment scenarios should be prioritised, and how can the digital euro be integrated in such a way that it usefully complements existing user behaviour?

Until now, internal auditing has looked in the rear-view mirror to determine whether traffic rules have been followed. But in a world where autonomous AI agents make decisions about loans, investments and market entries in milliseconds, the classic audit cycle is no longer appropriate. We are facing a ‘zero moment’: Audit must decide whether it will remain a footnote to digitalisation or become the central navigation system for management.

News, developments and strategic significance for banks, PSPs and acceptance points What are the important developments at the European Payments Initiative (EPI) and Wero from the perspective of merchants, service providers, businesses, authorities, associations and other acceptance points, as well as payment service providers and banks? A comprehensive overview.

As Europe’s digital central bank currency, the digital euro is intended to complement cash and offer advantages in terms of resilience, costs and data protection, among other things. With the adoption of the relevant regulation becoming increasingly likely, the pressure on banks to act is mounting. Five key decisions are on the agenda for Europe’s financial institutions.

Geopolitical risks are overarching risk drivers that can affect all risk categories within banks. As the current elevated geopolitical environment has material implications for the banking sector, these risks have become a central supervisory topic for BaFin and the ECB. This article explains what geopolitical risks entail, how they affect banks at a systemic level, and what supervisory authorities expect in terms of governance, risk management and resilience.

For many banks, the register of grants, use of funds and measures is an annual obligation that requires considerable coordination. What are the typical problems in banking practice, and what added value do they offer banks and customers? This article answers these questions and provides practical takeaways.

CRR III has been in force for more than a year now. And yet many institutions are still not fully exploiting the potential of the new regulations. With the introduction of ‘property values’, a new framework concept for the valuation of real estate collateral has been implemented. This offers potential savings in risk-weighted assets, particularly for institutions with a high volume of real estate loans. The equity capital that is freed up opens up growth opportunities and advantages in pricing. It also makes it easier to meet the reporting requirements of WIFSTA. Due to the existing transition periods, it is highly recommended that institutions address their specific potential in a timely manner.