Amid significant global regulatory reform, banks and securities firms are faced with numerous challenges and sweeping changes. How should banks’ operating models evolve? Where are the greatest opportunities for growth? What is the most effective way to raise and manage capital?
These are some of the questions banks are wrestling with as they seek to comply with new regulations while meeting the expectations of customers and shareholders for service, transparency and return-on-investment.
The banking industry in Ireland encompasses two very different stories. After the devastating collapse of domestic banking, our local banks have either been nationalised or brought close to nationalisation. Restructuring and recapitalisation of these banks has been a key part of Ireland’s programme with the Troika. EY has been privileged to work closely with the Central Bank of Ireland on the annual Financial Measures Programme Assessment of bank capital adequacy in 2011 and 2012.
We have also provided support to the new boards and management in domestic banks. This has consisted of: investigating legacy issues, building new risk, compliance and internal audit capability to ensure good governance going forward – as well as help with asset divestment, restructuring and other change programmes that both the local and foreign players in the domestic banking market are still going through.