Banks not effectively applying risk tools, says report

Many banks are not effectively applying risk tools when pricing and structuring deals, according to research and consultancy company PA Consulting.

Only 31% of banks surveyed – from a pool of 106 – use credit risk tools when deal structuring, said PA in a report entitled Risk-based management in the banking sector. PA also believes that banks could significantly improve their shareholder returns by using their risk management tools to make “better” business decisions, such as risk-adjusted performance measures for staff remuneration.

“Credit risk tools are mostly being used to set prices and for accept/reject decisions, rather than to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here