HSBC Global Banking and Markets’ Post

Happy to share a worthwhile read. So many firms are focused on #collateral #optimization . Step-1 is visibility to your sources and uses of funds. Step-2, is real time connectivity to your venues. These allow optimization to be truly efficient. Without both, it is like being in a boat without a paddle. There will be no, "row, row, row your boat gently down the stream". #fintechinnovation

Today the PRA fined HSBC £57m for failures in deposit protection identification. This is the 2nd largest fine the PRA has imposed on a firm to date (in case you’re wondering, the highest fine was £87m for Credit Suisse in 2023 for risk management and governance failures). The PRA’s final notice to HSBC contains lessons for all FS firms, not only deposit takers.  Here are my top 5 take-aways for governance and compliance:

The Basel Committee on Banking Supervision has finalized revisions to the Core Principles for effective banking supervision after gathering global stakeholder feedback. Endorsed by supervisors and central bankers representing over 90 jurisdictions at the 23rd International Conference of Banking Supervisors, these updates reflect adjustments aimed at clarifying supervisory powers, refining definitions related to business model sustainability and climate-related financial risks, and enhancing criteria for corporate governance and risk management. These changes are designed to bolster regulatory frameworks globally, ensuring resilience and stability in the financial sector. Check out this article to know more! #BankingSupervision #BaselCommittee #FinancialStability

The Citi incident (fat finger error) underscores the critical importance of effective control management in trading operations. The absence of crucial tools and external data feeds led to a massive error, with a trade intended for $58 million mistakenly executed at $444 billion ($139 million actual loss). This situation highlights the dangers of relying on manual processes and the lack of hard block controls, emphasizing the need for robust contingency plans to strengthen automated systems to prevent such costly mistakes. Effective governance and control mechanisms are essential to mitigate risks and ensure operational integrity. #riskandcontrol #infosecandtechnologyrisks #operationalrisk #humanriskfactor #contingencyplan #businesscontinuityplan #toprisks #risklosses #riskmanagementinsights

Citigroup's trading controls are in the spotlight! The bank was hit with a major fine by UK regulators for deficiencies in its trading systems and controls. This incident, including a $1.4 billion erroneous order, raises concerns about risk management practices in the financial sector. What are the implications for Citigroup and the broader industry? Read more for the full story: https://lnkd.in/ghG5Neif #finance #riskmanagement #Citigroup

How important is your reputational risk ? Its something that you should protect at all cost So I’m surprised to see today’s headline HSBC has been fined more than £57m for failing to protect consumer deposits. Qs will be asked Actions will be taken However, the headline will damage your reputation so managing it is vital for your image and standing As always 2 sides to every story. Make sure you check out HSBC response

While celebrating the 50th anniversary of BCBS, more than 220 central bankers and banking supervisors representing more than 90 countries came together to endorse the revised core principles for effective banking supervision! The revised standard reflects changes to: embed learnings for mitigating financial risks and to strengthen the macroprudential aspects of supervision; promote operational resilience; reinforce corporate governance and risk management practices; and address new and emerging risks, including the digitalisation of finance and climate-related financial risks. #regulatoryframework #bankingsupervision #banking #bankingindustry #regulatoryaffairs #riskgovernance #futureofbanking #futureoffinance

Join our live webinar on Basel 3.1 policy where our experts discuss how these changes may impact UK-regulated banks and subsidiaries.

Partner Kit Spicer, CFA, PRM spoke with Banking Risk and Regulation about the renewed interest from US regulators in addressing interest rate and liquidity risk management practices at large financial institutions, and the importance of instituting strong governance practices to defend against complacency. Click below to view the article ⬇️ #riskmanagement #financialservices #Banking

I just completed HSBC's Global Banking & Markets on Forage * Completed a simulation focused on the areas of Operations and Technology within the Digital Business Services division * Brainstormed a high-level list of initiatives to help drive to net zero * Helped the team get organised to tackle the discovery phase of a project * Analysed transaction data to determine priority currencies * Matched financial products with various clients * Analysed transaction data to develop a summary of debt capital markets (DCM) activity *Defined the strategic rationale for M&A and filtered target #HSBC Check out the simulation here: https://lnkd.in/er9xgkBC