Hampshire Trust Bank
Strengthening ICAAP and risk modelling processes
In pursuit of further growth aligned to improved risk management controls, Jaywing was appointed to help Hampshire Trust Bank (HTB) develop and embed new methodologies for stress testing and assessing capital adequacy.
Increasing regulatory demands on small banks via their ICAAP and SREP poses new challenges to firms who need to be able to actively identify, understand and manage all aspects of risk that their organisation faces in the running of their business. In particular, more emphasis is placed by the regulators on firms’ stress testing capabilities and their ability to quantify the impact of adverse economic conditions on their capital requirements.
We helped HTB improve their credit risk modelling capability enabling the delivery of higher quality management information, and robust stress testing models that can be used alongside the depth of expertise within the internal teams to support improved assessment of portfolio losses in downturn conditions. This has played a key role in shaping HTB’s 2018 ICAAP exercise and in improving credit risk modelling.
Moreover, the work on the ICAAP is just one part of significant advancements in risk management practices at HTB, changes that will undergo continuous future improvement due to training provided at different levels across the organisation to embed the changes operationally and culturally.
Hampshire Trust Banks’s Chief Financial Officer, Tim Blackwell, said, “Jaywing has significant experience in credit risk modelling, stress testing and capital planning. What made them stand out was their knowledge of ICAAP requirements, their client engagement approach and their commitment to deliver on all aspects of the plan, collaborating seamlessly with the internal teams and supporting us on our journey of continuous improvement and development.”
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