G-SIFI & Marisk
MaRisk & G-SIFI
A comprehensive framework about regulations
International Finance
October 2013
1
Agenda
MaRisk
1.1 Comprehensive Framework
1.2 Scope of application and requirements
G-SIFI
2.1 Comprehensive Framework
2.2 Identification
2.3 Capital Requirements
2.4 Recovery and Resolution Plans
2.5 Consequences of Regulation
2
MaRisk | Comprehensive Framework
What Does MaRisk Mean?
Is the acronym for “Mindestanforderungen An Das Risikomanagement”, meaning Minimum
Requirements for Risk Management
MaRisk development was triggered by:
Basel Committee on Banking supervision’s new framework for the capital adequacy of banks (generally referred to as “Basel II”)
Institutions must establish:
Appropriate management, monitoring and control process;
Strategies and process that ensure that all material risks are covered by internal capital
MaRisk forms a comprehensive framework for banks’ own internal risk management and attaches great importance to the quality of risk management.
a) counterparty risks (including country risks),
b) market price risks,
c) liquidity risks
d) operational risks
3
http://www.bafin.de
MaRisk | Scope of Application and Requirements
Scope of Application
It intends to contribute to the elimination of deficiencies in the banking and financial services industries.
Deficiencies may: make vulnerable the security of the assets entrusted to the institutions; damage the proper conduct of banking transactions or financial services
Create substantial disadvantages for the economy as a whole
General requirements for risk management
1.Risk Bearing Capacity
The institution has to ensure that the material risks are covered by the risk taking potential at all times and that the institution is therefore able to bear its material risks
2.Strategies
The management board has to define a business strategy and a consistent risk strategy
3.Internal Control System
a) set forth regulations regarding the
A comprehensive framework about regulations
International Finance
October 2013
1
Agenda
MaRisk
1.1 Comprehensive Framework
1.2 Scope of application and requirements
G-SIFI
2.1 Comprehensive Framework
2.2 Identification
2.3 Capital Requirements
2.4 Recovery and Resolution Plans
2.5 Consequences of Regulation
2
MaRisk | Comprehensive Framework
What Does MaRisk Mean?
Is the acronym for “Mindestanforderungen An Das Risikomanagement”, meaning Minimum
Requirements for Risk Management
MaRisk development was triggered by:
Basel Committee on Banking supervision’s new framework for the capital adequacy of banks (generally referred to as “Basel II”)
Institutions must establish:
Appropriate management, monitoring and control process;
Strategies and process that ensure that all material risks are covered by internal capital
MaRisk forms a comprehensive framework for banks’ own internal risk management and attaches great importance to the quality of risk management.
a) counterparty risks (including country risks),
b) market price risks,
c) liquidity risks
d) operational risks
3
http://www.bafin.de
MaRisk | Scope of Application and Requirements
Scope of Application
It intends to contribute to the elimination of deficiencies in the banking and financial services industries.
Deficiencies may: make vulnerable the security of the assets entrusted to the institutions; damage the proper conduct of banking transactions or financial services
Create substantial disadvantages for the economy as a whole
General requirements for risk management
1.Risk Bearing Capacity
The institution has to ensure that the material risks are covered by the risk taking potential at all times and that the institution is therefore able to bear its material risks
2.Strategies
The management board has to define a business strategy and a consistent risk strategy
3.Internal Control System
a) set forth regulations regarding the