Mazars partnered with The Economist Intelligence Unit to discuss what makes a socially engaged bank a successful business.
In light of the teachings of the financial crisis, banks have considerably reviewed the way derivatives are valued. Institutions are currently developing methodologies that consider all the costs and risks related to derivatives activity.
Emmanuel Dooseman, Partner, Mazars & Michael Tuohy, Director, Mazars outline some of the key features required in measuring counterparty risk as part of the valuation of financial derivatives. For the banks, this is a better way of ridding themselves of non-core assets and improving their value, rather than rushing to surrender them.
The defeasance structures of banks have undergone fundamental changes over recent years. In the wake of the “bad banks” backed by government guarantees that were set up to bring together toxic assets, a system of internal ring-fencing has been introduced, which often focuses on core activities such as mortgages, small business loans, brokerage and bond issues.