Category Archives: McKinsey

Mckinsey : The evolving role of credit portfolio management

Credit portfolio management (CPM) is a key function for banks (and other financial institutions, including insurers and institutional investors) with large, multifaceted portfolios of credit, often including illiquid loans. Historically, its role has been to understand the institution’s aggregate credit risk, improve returns on those risks—sometimes by trading loans in the secondary market, and hedging—and identifying and managing concentrations of risk. In contrast to traditional origination and credit risk-management functions that look only at individual deals or borrowers, CPM looks across the entire credit book. Read more

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Solving Europe’s economic conundrum

How should policy makers undertake the reforms necessary to revitalize the continent’s economy and restore the confidence of voters? The McKinsey Global Institute wants your ideas. Read more

Mckinsey: Economic Conditions Snapshot, March 2016

 

Economic Conditions Snapshot, March 2016
Executives’ optimism wanes—suggesting concern about where the economy’s heading in 2016—while their company views hold steady. A common worry is slowing growth in China, which many cite as a threat to global growth.
Read our survey results →

Mckinsey : The future of bank risk management

Banks have made dramatic changes to risk management in the past decade—and the pace of change shows no signs of slowing. Here are five initiatives to help them stay ahead.

Risk management in banking has been transformed over the past decade, largely in response to regulations that emerged from the global financial crisis. But we believe it could be set to undergo even more sweeping change in the next decade. Indeed, while risk-operational processes such as credit administration today account for some 50 percent of the function’s staff, and analytics just 15 percent, by 2025 those figures could be around 25 percent and 40 percent respectively. Read more

Mckinsey : A best-practice model for bank compliance

Compliance risk has become one of the most significant ongoing concerns for financial-institution executives. Since 2009, regulatory fees have dramatically increased relative to banks’ earnings and credit losses (Exhibit 1). Additionally, the scope of regulatory focus continues to expand. Mortgage servicing was a learning opportunity for the US regulators that, following the crisis, resulted in increasingly tight scrutiny across many other areas (for example, mortgage fulfillment, deposits, and cards). New topics continue to emerge, such as conduct risk, next-generation Bank Secrecy Act and Anti-Money Laundering (BSA/AML) risk, risk culture, and third- and fourth-party (that is, subcontractors) risk, among others. Read full Article

Economic Conditions Snapshot, December 2015: McKinsey Global Survey results

In the global economy and at home, executives identify geopolitical issues as the greatest risk to growth. The concern is especially acute in Europe and North America, according to McKinsey’s latest survey on economic conditions,1 where respondents see geopolitical instability as both a short-term threat and a long-term problem. Even so, their overall economic outlook has brightened in the three months since our last survey.2Developed-market executives are more upbeat about the state of the economy than their emerging-market peers, yet more conservative in their expectations for China’s growth prospects—about which executives in China are the most bullish. Read more