Executive summary The regulatory breakthrough that changes everything After years of institutional exile, cryptocurrency and stablecoins are poised for mainstream adoption by traditional banks. This is driven by a fundamental shift in the U.S. and global regulatory frameworks. The problem: prohibitive cost of capital Basel Committee capital rules imposed a punitive 1,250% risk weighting on crypto assets, making them economically impossible for banks. A simple example: a $1 mi

Welcome to the November 2025 edition of our regulatory newsletter, featuring landmark reforms in financial supervision and prudential policy worldwide. This month, regulators worldwide continued to sharpen rules on digital innovation, AI risk, and financial stability.  This month’s highlights:  The Bank of England (BoE) kicked off a consultation on sterling stablecoin oversight, while Singapore’s MAS set out draft AI governance standards. The U.S. Federal Reserve unveiled new

The regulatory environment for UK building societies is undergoing a significant shift. The Prudential Regulation Authority (PRA) is progressing toward the phased implementation of its Strong and Simple Regime (SSR) from 2026. The SSR is designed to simplify prudential requirements for small domestic deposit takers (SDDTs), thereby providing simplified liquidity and disclosure requirements for eligible building societies. Also, the PRA is set to withdraw Supervisory Statement

C ontents Introduction About CVA and SA-CVA Benefits of SA-CVA Challenges with IMA-CVA Approach for Banks Summary References Introduction CVA reflects the market value of counterparty credit risks, the expected loss if a counterparty defaults. The rise in CVA-related capital for global banks stems from new regulations and increasing derivatives complexity. CVA assesses counterparty risk for OTC derivatives. Basel’s new rules replace prior methods with SA-CVA and BA-CVA, remov

Abstract:   Digital Asset Platform (DAP) represents a landmark transformation in capital markets. The strategic rationale behind DAP is to automate and digitize the entire asset lifecycle, from issuance through trading, settlement, and custody, by employing a permissioned blockchain, Daml Smart Contracts, and cloud-native architecture. This transformation results in faster settlement, eliminates manual reconciliation, enhances transparency, and enables real-time compliance, a

W elcome to the latest edition of our global AI update. This one captures the most significant shifts from late October and November, and a lot has been happening. India introduced its first comprehensive set of AI Governance Guidelines, designed to encourage innovation while promoting responsible adoption. Around the same time, companies like Cognizant began rolling out Claude to hundreds of thousands of employees, demonstrating how quickly enterprise AI is transitioning fro

10 years of contributor insight reveal default rate shifts for Private U.S. corporates and Financials. Explore the CRI at creditbenchmark.com D ashboard Executive Summary Banks, financial institutions, and investors struggle with limited credit risk visibility for private, unrated, loan-financed borrowers. Unlike public bond issuers, these firms operate outside rating agency coverage and lack market price transparency. They need trustworthy, timely, and distinctive inputs ba

Introduction Securitizations help European banks lend more. They allow banks to move the credit risks of loans off their balance sheets and use the freed-up capital to support new lending. But since the Global Financial Crisis (“GFC”), securitization volumes in Europe have dropped significantly, while in contrast, the U.S. market has grown, even though U.S. defaults peaked during the GFC. To address this, the EU Commission is reviewing how securitization works in the EU. This

How do you know if an AI model is truly smart, or just good at passing tests? A sweeping new study from the University of Oxford  has revealed that many of the world’s most popular AI benchmarks may not accurately measure what they claim. The research, titled “Measuring What Matters: Construct Validity in Large Language Model Benchmarks,”  analyzed 445  benchmarking papers from top AI and machine learning conferences, and the findings are raising eyebrows across the industry.

AI might be the Future- but that Future is coming with a Bigger Electricity Bill! Every time an AI model trains, a chatbot answers, or a tool generates an image, somewhere a data center is pulling megawatts of electricity to make it happen. Now, with global energy prices soaring, that hidden cost is coming into focus. The tech world’s biggest challenge isn’t just building more intelligent AI anymore; it’s finding the power to keep it running. The Growing Strain on AI Infrastr

Jet lag returning from Malaysia this week means that my usual “it’s 6:30am on a Saturday morning” is more like “I fell asleep at 3pm”… but the outcome is the same. In toying with using AI for scenario planning over the last few weeks it struck me that the two-day scenario workshop we ran earlier in the year could now be emulated in a couple of hours. The TL;DR -  Traditional scenario planning takes months of planning and costs upwards of $100,000 for a board level simulation.

Welcome to the October 2025 edition of our regulatory newsletter, featuring landmark reforms in financial supervision and prudential policy worldwide. This month’s highlights: the Federal Reserve’s push for transparency in bank stress tests, India’s adoption of the global IFRS 9 credit loss model, new monetary signals from the Fed, major EU and UK rule consultations, pivotal Basel Committee and Singapore MAS amendments, and advances in fintech governance. Regulatory authoriti

It’s Halloween night in the world of AI and Risk. The lights are dim in the data center, but something is stirring deep within the systems — models that should have been retired long ago whisper back to life. Their logs flicker with activity, unexplained trades appear in audit trails, and risk dashboards pulse with ghostly data points. No, this isn’t a scene from a sci-fi thriller. It’s what happens when model risk management lapses , when biases are left unchecked , and when

A manifesto for a 10x model of advisory: powered by technology, grounded in humanity Introduction This paper follows my previous reflection on how AI represents both the greatest opportunity and the greatest threat for the consulting industry—and how most consulting firms today are failing their own people. The consulting model as we know it is reaching its limits. Fees have grown disproportionate to impact, internal processes have become bureaucratic, and the human element t

Key Takeaways Over 800 leaders, including Steve Wozniak and Geoffrey Hinton, are asking to hit pause on superintelligent AI They warn that AI smarter than humans could put democracy and global security at risk Governments need to put real safety rules in place before things go any further This move is sparking a bigger conversation about how we handle the AI race This week, more than 800 scientists, leaders, and celebrities delivered a simple but urgent message- Hit pause- be

WHITEPAPER Today banks are operating under heightened uncertainty. Since early 2025, global markets have experienced considerable volatility, driven by unpredictable policy directions and rapidly shifting economic indicators. This has been reflected in pronounced movements across equity markets and widening spreads in both short and long-term interest rates. One notable development has been the sharp increase in 10-year US Treasury yields following major policy announcements.

As September wrapped up and October got underway, the pace of leadership shifts picked up again across banking, insurance, and technology. From new Chief AI Officers to fresh appointments in risk and compliance, companies are clearly leaning into governance and innovation. Here are the major moves worth noting this fortnight. Aldis Erglis joins Emergn as Chief AI Officer - Emergn, a global consulting firm, has named   Aldis Erglis as its first Chief AI Officer.  In this newly

Key Takeaways Google is investing $15 billion to build its largest AI hub outside the U.S. in Visakhapatnam, Andhra Pradesh, aiming to power India’s AI-driven future and serve Asia and beyond. The project includes a gigawatt-scale data center, subsea cable infrastructure, and partnerships with Bharti Airtel and AdaniConneX, positioning Visakhapatnam as a critical global digital connectivity hub. This investment aligns with India’s Swadeshi push and AI mission, creating over 1

AI, People, and the Path Forward The consulting industry, worth over $300 billion globally, stands at a critical inflection point. Two converging crises (one technological, one human) are simultaneously threatening the survival of traditional consulting models. While much attention has focused on AI's disruptive potential, a deeper, more insidious problem has been festering: consulting firms are systematically damaging their most valuable asset, their people. Part I: The AI T

Key Takeaways UK Prime Minister Keir Starmer is in India with a 125-strong business delegation  to promote trade, investment, and...