19 January 2010
This house believes that stress is a killer for banks operating in the UK.
Background:Item 56 of the G20’s action plan called upon the Basel Committee to study the need for, and help develop, firms’ stress testing models and methodologies.
The UK has again moved quickly to front run international standards in this arena. Since 1 December 2009, UK firms have been obliged to rethink their approach to liquidity risk stress testing (PS09/16). By June 2010, firms will have to share their plans to meet new stress testing and reverse stress testing standards (PS09/20). By Q3 2010 new capital planning buffer stress testing requirements will be set (CP09/30).
Not to be outdone, CEBS has defined 22 guidelines in this space (CP32 on 14 December) to be implemented in June 2010 whilst the BCBS are consulting on stress testing (17 December) for April.
Any doctor will tell you stress is a killer. So how is the UK surviving?
• What is the advantage of so many consultations from so many bodies?
• Does the industry now understand what it takes to stress test properly?
• What lessons have been learnt from stress testing to date?
• Has the industry developed the infrastructure and resources to comply?
• Is the dramatic fall in the FSA’s large firm cost estimates (from £1.5 million in CP08/24 to £0 in PS09/20) over the past year justified?
Come and learn where the answers lie and what the issues are. Research findings will be presented and the conclusions debated by an expert panel comprising:
• Irving Henry, Policy Director, Prudential Capital and Risk, British Bankers' Association
• Mark Piper, Vice President UK, Ireland & MEA, FRSGlobal
• TBC, SAS
• TBC, Bank of America/Merrill Lynch
• TBC, RBS
You will have the chance to challenge the experts and air your thoughts to agree the house view under the Chatham House Rule. The panel will be chaired by Capital Markets Chamber leader, PJ Di Giammarino.
The session will be followed by drinks, canapés and networking.