Basel Committee on Banking Supervision: Compliance and the compliance function in banks

Singh, Dalvinder

doi:10.1057/palgrave.jbr.2340198

Cited by 12 publications

(6 citation statements)

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“…Compliance objectives pertain to the adherence to the laws and regulations to which a firm is subject. If firms fail to do so, this could lead to sanctions (legal or regulatory), financial loss, or reputation loss (Singh 2005). The Norwegian financial market, MiFID II, implemented by law in 2018, requires firms to implement a series of systems and controls to secure an effective risk management process.…”

Section: Phase 1: Planningmentioning

confidence: 99%

Developing a Maturity Model for the Compliance Function of Investment Firms: A Preliminary Case Study from Norway

Antonsen

Madsen

2021

Administrative Sciences

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This paper develops a model for the assessment of the maturity of the compliance function of investment firms. The model indicates a path of evolution wherein the compliance function matures from being reactive and inconsistent to becoming a proactive and integrated part of a firm’s business practices. A preliminary case study approach is used to test the practical application of the model in a Norwegian investment firm. The findings generally illustrate the ways in which the effectiveness of the compliance function can be evaluated using a maturity model. When it was used in the assessment of the compliance function within the case firm, the suggested model proved to be compatible with practice. The model represents an improvement framework that can help practitioners identify the status of the compliance function and provide guidance on its future improvement.

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Section: Phase 1: Planningmentioning

confidence: 99%

Developing a Maturity Model for the Compliance Function of Investment Firms: A Preliminary Case Study from Norway

Antonsen

Madsen

2021

Administrative Sciences

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“…The regulations applicable to implementing the compliance functions and the key principles of the institutional compliance management in banks were developed by the Basel Committee on Banking Supervision and presented as consultation documents (BCBS, 2003(BCBS, -2005. In turn, scholars address the following aspects in the study reports: implementing the compliance functions in banks (Singh, 2003;Edwards & Wolfe, 2004;Haynes, 2005;Misha, 2016); functional duties and roles of bank compliance officers (Fox, 1999;Meissner, 2018); assessing the compliance risks and their consequences, and compliance risk management (Haddad, 2016 According to analytical studies (Birindelli & Feretti, 2008) on the identification of compliance regularities and, specifically, the comparison of compliance systems used by Italian banks and structural subdivisions of foreign banking groups, the latter seem to pay more attention to compliance issues. Gabbi et al (2011) also factored in the criterion of international activity while cross-checking various groups of financial institutions (banks, insurance and investment companies) and pointed out that financial go-betweens with foreign capital appeared to be more experienced in terms of their ability to assess compliance risks and recognize their danger.…”

Section: Banks' Compliance With Regulatory Requirementsmentioning

confidence: 99%

“…http://dx.doi.org/10.21511/bbs.16(3).2021.11 According toSingh (2003), the enhanced interest to promotion of the efficient corporate governance is further boosted by the concerns of the international financial community about the use of the banking system as a channel for criminal money laundering and terrorism financing. However, as it follows from Yeoh (2019), the efficient compliance with regulatory requirements by banks for the purpose of money laundering/terrorism financing (ML/TF) prevention is still hindered by the competitive pressure, shareholder income imperatives, incentives for the aggressive profitability growth and the growing prices on the shares.To identify the bottlenecks in the compliance function implementation for the purpose of supporting the anti-money laundering program,Viritha et al (2015) interviewed bank employees in India.…”

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confidence: 99%

Identifying the volatility of compliance risks for the pension custodian banks

Achkasova

Bezrodna

Ohorodnia

2021

Banks and Bank Systems

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The high probability of risk transfer from banks to their counterparties in the field of non-state pension provision (pension account owners, non-state pension funds, insurance companies, asset management companies, etc.) determines the relevance of this study. The paper aims to develop a toolkit for identifying the compliance risk volatility for pension custodian banks based on causal modeling.This toolkit contributes to: 1) tentative cognitive mapping of the causal relationship between the compliance risks of pension custodian banks in the field of financial monitoring and financial and reputational risks to assess their acceptability by stakeholders in non-state pension programs, and 2) impulse modeling. The created toolkit is based on the performance data provided by Ukrainian banks, as well as on the reports of the National Bank of Ukraine. Apparently, an increase in penalty rates by 0.1% would reduce the compliance risks for banks by 0.03%, and the number of violations in financial monitoring (specifically the improper assessment/reassessment of customer risks) by 0.01%. In turn, the compliance risk volatility inherent in custodian banks affects the variability of their reputational and financial risks. Thus, reducing the compliance risks by 0.1% would improve the reputation of banks and increase their regulatory capital by 0.01%.The study findings substantiate the use of the created toolkit to supplement the risk profile components for pension custodian banks, thereby demonstrating the potential volatility of their compliance risks and their consequences for banks and individual groups of their stakeholders. AcknowledgmentThe work is prepared and financed within the framework of the state budget research work No. 45/20202021 “Formation of a risk-oriented system of accumulative pension provision” (DR No. 0120U101508).

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“…In 1990, for example, the Ghana Commercial Bank, Standard Chartered, Barclays Bank, and Social Security Bank, which held 78.95% share of total assets of the banking sector, declined slightly to 66.84% in 1997 and further declined to 51.2% in 2005. A study by Singh (2005) suggested that bank supervisors should place more emphasis on effective corporate governance in banks. This will enable them to reduce the likelihood of unmanageable risks.…”

Section: Literature Review On Competitionmentioning

confidence: 99%

Do Financial Sector Reforms Improve Competition of Banks? An Application of Panzar and Rosse Model: The Case of Ghanaian Banks

Owusu-Antwi¹,

Antwi²

2013

International Journal of Financial Research

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The study investigated the market structure of Ghana's banking industry and determined whether the market structure has been changed after the financial restructuring. This study specifically measures the degree of competition of the banking system in Ghana by using the H-statistics. Various studies on the degree of competition were reviewed. This study employs a widely used nonstructural methodology put forward by Panzar and Ross (1987) -the H-statistic-and drawn upon a comprehensive average annual data from the various issues of the Bank of Ghana annual reports from 1988 to 2011. Based on the reported H-statistic, it can be concluded that Ghana's banks are operating under perfect condition. However, the test for a change in competition status at the time of liberalization was not significant, indicating no evidence of a change in competition as a result of liberalization. This study has extended and strengthened some earlier results on bank competition in Ghana. However, the results of this study are different from the study undertaken by Buchs and Mathisen (2005), who found Ghanaian banking markets to operate under monopolistic conditions.

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Basel Committee on Banking Supervision: Compliance and the compliance function in banks

Cited by 12 publications

References 0 publications

Developing a Maturity Model for the Compliance Function of Investment Firms: A Preliminary Case Study from Norway

Developing a Maturity Model for the Compliance Function of Investment Firms: A Preliminary Case Study from Norway

Identifying the volatility of compliance risks for the pension custodian banks

Do Financial Sector Reforms Improve Competition of Banks? An Application of Panzar and Rosse Model: The Case of Ghanaian Banks

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