Publications

FS Viewpoints
Our series of timely, thought-provoking and informative publications on current issues impacting the financial services industry.

Banking Relationships: Managing Through Disruption

Banking Banana Skins 2012
Input from more than 700 banking executives from 58 countries indicate that economic uncertainty persists, with macro-economic risk rising to the top of the list of boardroom concerns. The fragile confidence in the sector is based on credit risk, liquidity, and capital availability. PwC and the Centre for the Study of Financial Innovation (CSFI) explore the risks bankers worldwide are facing in the current climate and how they prioritize them.

Banking Relationships: Managing Through Disruption
Banks are re-organizing operations to better serve their customers. Anthony Klick, a Principal in PwC's Banking & Capital Markets practice, discusses seven strategies that can help banks reinvent their business model and manage the transformation of their industry.

Quants in the front office: Creating value with organizational design
Despite a handful of comparables in the market, financial institutions looking to get more out of their quants would do well to review the competition but then design to their unique environment. The complex sets of factors that make up an organization are rarely portable, making design critical. Read on for our perspective on designing for an emerging quant operating model.

From surviving to thriving: Improving revenues and profits in the new banking environment
In the aftermath of the financial crisis, the banking industry is facing fundamental challenges. Tighter regulations and changing customer behaviours impact revenues and retention. Although some leading banks are embracing aspects of behavioral economics, cognitive science, "lean" manufacturing processes, and advanced analytic modeling, they need to do more.

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Mortgage Industry Considerations
When President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank" or the "Act"), July 21, 2010. the largest set of financial regulatory reforms since the Great Depression became law. The sweeping legislation will significantly impact every aspect of the financial services sector — and the mortgage industry is no exception.

From source to surveillance: the hidden risk in AML monitoring system optimization
Actively mangaging AML monitoring data can reduce costs, save time, avoid regulatory remediation and improve assurance. Moving beyond the financial crisis, regulators are refocusing their efforts on anti-money laundering and terrorist financing enforcement, The increased regulatory scrutiny is compelling institutions to take a closer look at their AML operations.

How to avoid the high cost of consumer credit losses
Having a flexible and dynamic collections program based on four critical cornerstones: segmentation, strategy, infrastructure and people, is key to minimizing future credit losses and optimizing recoveries on losses incurred to date.

An approach for managing warehouse lending operations
In this article, we review the warehouse lending operating model and discuss the steps organizations may consider in creating a lending operational platform that effectively manages risk.

Changing the rules of the road: FAS 167 impacts to the automotive industry
How will FAS 167 impact your your business and what guidance needs to be considered with the change in standards? Changing the rules of the road: FAS 167 impacts to the automotive industry provides key observations and recommended guidance when adopting FAS 167

Changes in GAAP for auto finance companies
This paper examines the recent modifications to Statement of Financial Accounting Standards 166 and 167, and how your organization can prepare to meet the challenges they bring.

Broker-dealer and investment adviser compliance programs
The separate regulatory requirements governing advisers' and broker-dealers' compliance programs are summarized here, as well as common "minimum elements" and the Federal Sentencing Guidelines suggest an additional and complimentary paradigm for compliance programs.

Algorithmic tools: adding efficiency and breadth to analysis
The volume of data generated from order and trade execution makes it difficult to analyze the information for trends or patterns of high-risk activities. Algorithms—often used to simplify trading execution—can be applied for analysis and surveillance. This approach enables greater insight into the activities and behaviors associated with order and trade data, improving a firm's risk management profile while achieving improved efficiencies.

Viewpoint on managing reconciliations by exception

Global FS Tax NewsFlash: Financial crisis responsibility fee: Obama's proposals
On January 14, 2010 President Obama announced his intention to introduce a series of measures designed to impose a levy on the largest and most highly leveraged Wall Street firms, including not only Banks but also Insurers and other financial services firms. The stated aim of these proposals is to recoup the support provided by US taxpayers to the financial sector during the credit crisis.

BCM tax: A commentary on banking & capital markets tax issues in Asia Pacific
This publication by PwC's Asia B&CM Tax Network, discusses tax considerations arising from bankers operating on a cross border basis alongside tax developments in Asia Pacific that will have an impact in the banking and capital markets sector.

Model risk mitigation and cost reduction through effective design
This paper offers ideas on how to combat model risk at an early stage of the model life cycle – the design phase. We provide practical recommendations on how to design model production systems in a manner that minimizes model risks and reduces model validation and maintenance costs.

Capitalizing on a climate of change
The issue of climate change is evolving from primarily a scientific and public policy concern to one of business risks and opportunities. Until recently, the impact of climate change on the deal market was barely on the radar of most businesses. However, national policy action on greenhouse gas emissions is requiring companies in virtually every industry to think about the impacts of energy and climate policies on their businesses.

Global Private Banking and Wealth Management Survey 2009 -- A new era: Redefining ways to deliver trusted advice
Established since 1993, this year's survey features data from 238 wealth managers in 40 countries. It includes input from senior management, with respondents ranging from global banks to specialists boutiques, family offices and high net worth individuals, providing significant insights into the global private banking and wealth management marketplace. Click to learn more about this year's key themes and findings.

Prime broker assurance: Responding to market changes and pressures for increased transparency and risk management
Increased market competition and client focus on risk management may require Prime Brokers to rethink how they provide assurance over their internal controls. Prime Brokers who are currently able to respond to requests for greater transparency will be in a position to differentiate and position themselves in the changing market landscape as a service provider able to meet the demands of their clients..

The custody business at a crossroads: Critical choices in a turbulent marketplace
The face of the custody business has changed as much as any other area of financial services over the last 10 years. In this context, custody providers face critical business decisions regarding business strategy and investment. The document provides our point of view and a framework for response.

Exchange and E-Trading system outages: How to successfully manage this risk
Today's trading environments are seeing large swings in market volatility and the accompanying trading volume. These changes present a challenge to organization's in ensuring their systems and related processes are both stable and resilient to handle the increasing demands placed on them and in those situations where an incident or outage may occur, and how the organization can effectively handles and respond such incidents. This document provides some examples of where problems can occur and how some organizations have built controls to mitigate such occurrences.

Financial Holding Company status
A company that owns a bank is defined under federal banking law as a Bank Holding Company (BHC). In 1999, Congress amended the law governing BHCs to allow them to engage in a much broader range of activities through nonbank subsidiaries if they elected, with Fed approval, to become a Financial Holding Company (FHC). The current financial crisis is causing many large financial firms to pursue or at least consider becoming FHCs.

Achieving finance effectiveness and efficiency: Driving sustainable change within financial services
Finance change initiatives, regardless of scope, should not focus on "transforming finance". Rather the focus should be on simplifying low-value activities and creating capacity to focus on higher-value activities.

Financial crisis of 2008: Navigating and mitigating risks
Over the past year the financial markets have experienced unprecedented turmoil, uncertainty and change. What initially began as a decline in homes values and illiquidity in the subprime mortgage market, has now evolved into a broader capital markets crisis having far reaching global ramifications.

Doing more with less: Improving the anti-money laundering surveillance program
Monitoring customer activity for money laundering and terrorist financing is one of the most daunting compliance challenges for financial institutions.

Intelligent risk management & compliance cost reduction
Creating a sustainable risk and compliance organization while reducing inefficiency and improving effectiveness.

Intelligent cost reduction: Developing & executing a program to reduce cost & create a sustainable operating platform
Cost management is a key issue today and for the foreseeable future. Many institutions are in the midst of re-thinking their fundamental business strategies and focusing on operational costs only will not be sufficient. A well organized end to end program is needed.

Current challenges in counterparty collateral management
The recent turmoil in the credit markets has highlighted significant errors and shortfalls in collateral management operations. These errors have translated into material actual losses creating a risk management exposure but also a savings opportunity.

Building sustainable efficiencies: Leveraging anti-money laundering investments
This viewpoint discusses how institutions can reframe AML by championing the effective transfer of knowledge through energized approaches to their people, processes and philosophies.

Bank tax digest
The PwC bank tax digest is prepared monthly by the firm's Washington National Tax Services office, as a quick reference to key developments of potential interest to the industry.

How to discover ways to sustainable anti-money laundering operations.
This viewpoint discusses how institutions can build a sustainable AML operation that enable them to properly balance cost with risk.

How credit market conditions expose challenges of securitization technology systems
This article discusses how organizations due to the ongoing liquidity crunch now rely more heavily on financial models to support valuation prices. Those issuers whose systems can provide granular data which can be analyzed objectively will garner the confidence of investors and rating agencies.

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