Banking & capital markets

3/7/13 | Financial services regulatory practice

This FS Regulatory Brief provides our view of (a) where banks stand right now in preparing for Volcker, (b) the timing of the final rule and what it may look like, (c) the response of foreign regulators, and most important (d) what banks should be doing now.

Dataline

12/7/12 | Assurance services

Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. The FASB expects to issue a revised exposure draft in the first quarter of 2013 for public comment. The board will likely ask for feedback on the amount of time needed to implement the changes before deciding on an effective date for the final standard. The IASB issued an exposure draft of its proposed changes to IFRS 9 in late November 2012 with a proposed effective date of January 1, 2015. The exposure draft has a 120-day comment period. This Dataline provides a summary of the boards' decisions that is based on the project summaries posted on their websites, our observations of their meetings, and our understanding of their intent.

12/5/12 | Financial Services Institute

The rise of the digital consumer and the high-cost infrastructure of physical banking locations are leading to a declining ROI for branches. Evolving the branch network to align with changing consumer and economic realities can help banks boost ROI and position themselves for the future.

11/23/12 | Consumer finance

Mortgage fraud reports rose 31% in 2011, costing the industry $3 billion as fraudsters have changed their target from loan origination to default servicing, loan modifications, short sales, and property liquidations. Mortgage companies need to change their mortgage fraud prevention strategy.

11/15/12 | Advisory services

Despite many threats to profitability, retail banks have rich opportunities for growth. Customers will pay for banking experiences they value. The challenge lies in delighting customers through experiences they value rather than exhausting resources on offerings they ignore.

11/9/12 | Consumer finance

Merger and acquisition activity in consumer finance has increased due to regulatory scrutiny, higher capital costs, uncertainty over government sponsored entity (GSE) reform, and general market changes. Consumer finance companies should assess their integration plans while keeping the associated risks and opportunities top of mind.

11/8/12 | Banking & capital markets

This point-of-view will help companies better understand the cost benefits to using digital mail and how it may impact the customer experience.

11/2/12 | Banking & capital markets

This point-of-view discusses the four themes that we have identified that impact the evolution of mobile payments and shape how players should respond.

In brief

11/1/12 | Assurance services

Over the past several months, issuers and other constituents in a variety of industries have raised concerns to the FASB staff and board regarding the scope of the new balance sheet offsetting disclosure requirements required by Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities. In response to these concerns, at its October 31 meeting the FASB decided to amend and clarify the scope of the balance sheet offsetting disclosures. These disclosures are effective in Q1 2013 for calendar year-end companies. This In brief article provides an overview of the FASB's decision and what's next.

Dataline

10/18/12 | Assurance services

The 2012 AICPA National Conference on Banks and Savings Institutions was held September 10 through 12, 2012 in Washington, DC. Representatives from the banking regulators, SEC, and standard setters presented at the Conference along with auditors, users, preparers, and industry experts. Presenters expressed views on a wide range of important accounting, auditing, and financial reporting topics. This Dataline provides highlights of topics discussed at the Conference.

7/30/12 | Banking & capital markets

This PwC paper discusses the recent reform and how the banking industry is responding − via recapitalisation, restructuring, reform, etc − as well as renewing their strategies with the investors, communities and customers they serve.

7/30/12 | Consumer finance

This report highlights shortcomings in the practices of the Private Student Lending (PSL) industry leading up to the 2008 financial crisis and changes since then. PSL lenders are encouraged to focus on better underwriting, loss mitigation options, and increasing transparency.

7/20/12 | Financial services regulatory practice

July 2012 - The three federal banking agencies released three notices of proposed rulemaking that will revise regulatory capital rules for US banking organizations and align them with the Basel III capital standards that were issued in December 2010 and subsequently updated in 2011 (Basel III).

6/7/12 | Financial Services Institute

For private banks in China, managing and deploying talent causes retention problems and increases the demand for outside hiring of both experienced and entry-level talent. The ability for private banks in China to expand their client base depends in part on an organization's flexibility to meet differing client needs based on demographics, wealth tier, and preferences. Equally important is developing a team-based approach to building relationships with heirs and building close relationships with the next generation.

5/14/12 | Financial services regulatory practice

May 2012 - The Federal Reserve Board of Governors released a policy statement intending to clarify expectations for covered banking entities regarding the Volcker Rule. What constitutes “good faith” efforts toward compliance is unclear. The largest banks have been undertaking a “good faith” approach to Volcker since the passage of Dodd-Frank.

PwC comment letter (PCAOB)

5/8/12 | Assurance services

PwC believes that the audits of brokers and dealers should be conducted in accordance with PCAOB auditing and attestation standards once the SEC adopts Rule 17a-5 and, therefore, supports the changes to the Board's rules to reflect its pending jurisdiction over the auditors of brokers and dealers.

4/30/12 | Consumer finance

Forecasts predict the federal student loan default rate, reported by the Department of Education, will reach double digits in 2012, with no relief in sight. By understanding the causes of why student lending default continues to rise, default managers can work to insulate themselves against this trend.

4/3/12 | Financial Services Institute

As banks race to develop mobile banking apps that satisfy consumer demands, how can they guard against the security breaches that could damage their reputation and prompt customers to flee?

3/13/12 | Financial Services Institute

Banks should replace traditional pricing with data driven approach that includes customers' needs, preferences, behaviors, purchasing patterns, and price sensitivity.

1/30/12 | Banking & capital markets

PwC's Banking Banana Skins 2012 ranks bankers views on current risks facing the banking industry. The top three risks ranked are macro-economic risk, credit risk, and liquidity risk.

1/19/12 | Financial Services Institute

Regulatory, market, and operational needs impact commercial lending processes and systems. Banks should focus on data strategy.

1/19/12 | Banking & capital markets

Can bail-in capital bail out the banking industry? Bail-in capital is central to the regulatory reform of banks, and can help to restore confidence in the industry. The Basel Committee on Banking Supervision has announced that all non-core equity capital instruments would have to have a bail-in feature from January 1, 2013. This PwC publication examines the challenges and practical issues that need to be addressed before bail-in capital can become a reality.

PwC comment letter (PCAOB)

2/15/11 | Assurance services

PwC believes that, consistent with the existing rule, the issuer, rather than the registered public accounting firm as is proposed, should be responsible for submitting notice to the PCAOB when a registered public accounting firm has signed an unqualified opinion or issued a consent to reissue a previously issued report in special circumstances when the issuer has outstanding a past-due share of the accounting support fee. If adopted as proposed, PwC asks that the Board explain its rationale for this change since its purpose is not clear.