About a-team Marketing Services

A-Team Insight Blogs

Nine Out of 10 Bankers Not Confident Over Stress Testing – According to New Sybase Survey

Subscribe to our newsletter

Sybase, an SAP company and industry leader in enterprise and mobile software, today announced results of a survey showing that more than nine out of 10 capital markets executives lack confidence in bank stress testing, while more than 75 percent are struggling to capture trading system data. These key findings, among others, came from a survey conducted in London last week at the Sybase Financial Services Executive Summit, which drew senior managers and C-suite risk management professionals from major capital markets firms.

When asked about the reliability and frequency of bank system stress testing, a combined 94 percent of respondents were either not at all confident or only somewhat confident that stress testing has addressed all the important risks to the banking system. Directly related, more than eight out of 10 executives surveyed (84 percent) believe stress testing should be upped to at least every six months. Currently, EU regulators carry out yearly stress tests on the biggest lenders in the region.

Three out of four respondents (76 percent) said they struggle to capture data from trading systems for audit, compliance or future analytical purposes. At the same time, 75 percent believe data latency and regulatory challenges will consume the most significant portion of their firm’s resources, followed by front/middle/back office integration (25 percent). “Merging front and middle office in particular presents numerous challenges, yet they are clearly outweighed by the business benefits. These lines will only continue to blur,” said Stuart Grant, Financial Services Business Development Manager at Sybase.

Basel III’s impact on profitability will range from moderate to significant, according to nearly all (98 percent) of those surveyed, indicating another area of concern added to the Eurozone’s current anxiety over sovereign debt issues plaguing Greece and other countries.

“There is a significant amount of uncertainty and concern among participants in the capital markets community over the current state and future outlook for the industry.  We’re clearly seeing the persistence of chronic challenges, with no immediate relief in sight,” added Grant.  “These results don’t come as a surprise, based on the continual feedback we elicit from our customers. This is why Sybase Analytics solutions such as ESP and RAP are being adopted by customers facing regulatory challenges.”

Sybase financial solutions include advanced data management and analytics that improve trading, risk management, compliance and market data management across the enterprise.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to gain operational efficiency in corporate actions processing

While the risk associated with corporate actions is well established, many financial institutions continue with manual processing in the back office. More often than not, corporate actions information is manually keyed in and event processing lacks automation. This results in operational inefficiency, and financial risk due to missed events or simply getting it wrong. These...

BLOG

Banks’ PRIIPS Headache Set to Intensify as Capital Markets Union Regulation Ramps Up

By Kifaya Belkaaloul, head of regulatory at NeoXam. Over the past decade, the European Union has rolled out a host of new regulations aimed at fostering more competitive capital markets and mobilising private investment towards critical goals including the digital transition and climate emergency. One of the EU’s core levers for enacting change has been...

EVENT

Data Management Summit London

Now in its 14th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...