Regulatory Analysis
Risk Control works with individual financial institutions, industry associations, central banks and regulators to assess the impact of regulations and to suggest alternative approaches. Our work has provided scientific analysis facilitating contacts between firms and their regulators.
- Impact analysis of capital and liquidity rules, widely cited by regulators and industry
- Detailed proposals for securitisation capital rules
- Example 1: Support for major bank faced with supervisory findings on internal rating models
- Example2: for the European Commission, an analysis of liquidity in the European corporate bond market
- Example: for a major banking association, the impact of proposed securitisation regulations on capital charges using highly confidential position data from a group of major global banks
- Example3: for a central bank facing an imminent IMF FSAP mission, devised a system-wide stress testing methodology with contagion and implemented it in software
Related research
Capital Cliffs and EU Securitisation Regulations
This report (written jointly by a Risk Control Director and co-authors from leading industry organisations) assesses cliff effects in European securitisation capital rules. Capital cliffs create distortions and exacerbate instability in financial stress…
Full text · figuresMaking the Bank Securitisation Capital Rules Work for Europe
This report assesses the European Commission’s 17th June 2025 proposals for reforming bank securitisations capital rules. While we welcome the intended goal of unlocking bank issuance and investments in securitisation, and the direction of the proposed rule…
Full text · figuresHow to Calibrate Securitisation Capital Rules
Regulatory authorities in Europe may wish to reconsider the capital that banks and insurers hold against their securitisation exposures. Such a review is justified by the need for Europe to finance climate and digital transitions. Boosting investment will only…
Full text · figuresTell us the question. We’ll show you the model.
Every engagement starts with a conversation with the quants who would do the work.