Counterparty Credit Risk (CCR) after the ECB’s 2025 CCR-ES: What EU Banks Must Do—And When
1. Context In August 2025 the ECB released results of its Counterparty Credit Risk Exploratory Scenario (CCR-ES), run alongside the 2025 EBA stress test. It’s exploratory (no direct capital impact), but the qualitative outcomes feed supervisory dialogue/SREP—i.e., expect follow-ups with your JST and expectations to rise across modelling, governance, and NBFI practices Who was in […]
CRD6 and Third-Country Branches
1. Context In the context of banking and financial regulation in the European Union (EU), a Third-Country Branch (TCB) refers to a branch of a bank that is headquartered outside the EU/EEA but operates within the EU through a local branch rather than a subsidiary. According to the European Banking Authority’s latest update from November […]
MiCA, AI & the Digital Euro: What EU Financial Institutions Must Prepare for Next
1. Introduction The financial landscape in the European Union (EU) is undergoing a profound transformation driven by fintech innovations and digital advancements. From the rise of neobanks to the integration of artificial intelligence (AI) in financial services, digital finance is reshaping how consumers and businesses interact with banking and investment platforms. This article explores four […]
Optimising Model Risk Management (MRM)
1. Introduction All banks are now dependent on models, making model risk one of the fastest-growing risks facing the banking industry today. As financial institutions rely more on predictive analytics to guide critical decisions, managing model risk effectively has never been more crucial. Model Risk Management (MRM) helps manage operational, reputational, and regulatory risks by […]
Trends Shaping the Financial Services Industry in 2025
1. Introduction The financial services industry proved to be a bellwether for economic health and innovation in 2024. Despite challenges such as geopolitical tensions, regulatory shifts, and rapid technological advancements, the sector displayed remarkable resilience. Key achievements included: Navigating Complex Geopolitical Risks: Institutions adapted to global uncertainties, ensuring financial stability and market responsiveness. […]
Financial Software Solutions
1. Einleitung In der sich schnell verändernden Finanzwelt von heute steigt die Nachfrage nach umfassenden und effektiven Finanzsoftwarelösungen. Mit zunehmender Komplexität im Risikomanagement, datengestützten Analysen und dem Bedarf an fortschrittlichen Prognosemodellen suchen Unternehmen aller Branchen nach zuverlässigen und innovativen Tools zur Optimierung ihrer Finanzprozesse. Laut dem Gitnux Marketdata Report 2024 wird für Europa im Zeitraum […]
Integrating Sustainability into Valuation
1. Introduction The topic of Sustainability has become profoundly influential in all aspects of our lives today, transcending the debate about its existence or regarding it as a mere marketing myth that pervades global discussions. This influence is particularly amplified within the financial realm, where many perceive the financial markets to be pivotal in solving […]
Model-based Financial Regulation
1. Introduction In this article, we will delve into the influence of model-based financial regulations on the shift towards achieving net-zero carbon emissions. We will also examine its advantages, constraints, and hurdles in shaping regulations. Additionally, we will identify key stakeholders capable of driving a sustained impact in this transition. As the world grapples with […]
Navigating the Complexities of a Climate Risk Landscape
Introduction With six months and two seasons in 2023 breaking previous records, the global November temperatures particularly stand out. Notably, two days surpassed the threshold of being over 2°C higher than preindustrial levels. Consequently, 2023 has etched its name in the annals of history as the warmest year ever recorded (Copernicus Climate Change Service, 2023). […]
Project Gaia
Introduction Climate change, a mounting global concern, goes beyond geographical and ecological repercussions. It also poses a significant risk to overall financial stability. As extreme weather events increase in frequency and intensity, businesses, governments, and financial institutions are faced with the need to understand and address these climate risks. The Carbon Disclosure Project (CDP), initially […]