MRM: How Banks Are Scaling Models in the Age of AI
Banks are confronting a surge in AI‑driven and regulatory‑triggered model inventories, prompting a transformation of model risk management (MRM). A Risk.net and Moody’s white paper, based on a survey of 79 model professionals and interviews with senior staff from Standard Chartered, Citigroup, CaixaBank, EastWest Bank, Nordea and Moody’s, outlines how institutions are modernising governance, validation and lifecycle oversight. The report highlights the need for centralized platforms, automation and new workflow tools to scale controls without stifling innovation. It also projects how the model risk function will evolve in an AI‑enabled banking environment.
ALM in 2026: The Fast-Track From Compliance to Competitive Edge
Three years after Silicon Valley Bank's collapse, banks are shifting asset‑liability management from a compliance function to a strategic advantage. Regional and mid‑size institutions are adopting dynamic ALM frameworks that inform funding strategy, pricing, and hedging amid rate volatility. The...
Seven Developments Shaping US Treasury Clearing
The SEC’s upcoming Treasury clearing mandate is set to make central clearing mandatory for U.S. Treasury securities, prompting firms to re‑engineer trading, risk, and operational frameworks. The Fixed Income Clearing Corporation (FICC) is responding with seven new initiatives, including expanded...
The Changing Shape of Variation Margin Collateral
Variation margin (VM) collateral, long dominated by cash, is facing pressure from higher funding costs, stricter regulations, and market stress, prompting firms to explore non‑cash alternatives. A Risk.net survey of 114 collateral specialists shows 57% of sell‑side and 33% of...
Repo Clearing: Expanding Access, Boosting Resilience
Repo clearing is gaining traction as market liquidity tightens and regulators push for more transparency. LSEG’s RepoClear head Michel Semaan discussed how mandatory clearing and new haircut rules could enhance resilience while potentially shifting liquidity. Buy‑side firms, including hedge funds...