Prometeia is a global provider of consulting services and software solutions focused on Risk, Performance & Wealth Management for banks and financial intermediaries, with over 800 industry experts. It now completes its proposition with Data Science solutions for banks and insurance companies.

Company Insights

Does the high financial exposure in the US represent a risk for the euro area?

20th February 2020

The euro area holds US assets worth approximately €7,000bn (60 percent of GDP) - with almost half portfolio investments (Chart 1). At the end of 2006, that is, before the financial crisis in 2008, European investments in the US totalled €2,600bn, less than 30 percent of GDP. Europe’s current asset position combined with the higher...
TLTRO III funds: when is the best moment to knock at the ECB door?

20th November 2019

In September 2019, the ECB announced changes to the new targeted longer-term refinancing operations (TLTRO III). Differently from what outlined in March, the maturity of TLTRO III operations was extended from two to three years, and, for the banks exceeding their lending benchmark, the interest rate applied will be the average interest rate on the...
Does digitalisation increase bank profitability?

23rd September 2019

Bank profitability in Italy and in the euro area has improved from the post-crisis lows. However, for many banks, earnings are still below what is required by investors and the recent slowdown in economic growth could threaten the recovery of banks’ profits. Why is this a problem? Why does banks’ profitability matter overall, not only...
Capital rules provide good news for banks’ credit facilities

20th March 2019

The European Commission’s proposal to amend the single rulebook, the "banking package" – the Capital Requirements Regulation (CRR), the Capital Requirements Directive (CRD) the Bank Recovery and Resolution Directive (BRRD), and Single Resolution Mechanism Regulation (SRMR) has finally reached its final stages after more than...
Public support in bank crisis management: from theory to practice

27th February 2019

The BRRD (Bank Recovery and Resolution Directive), which introduced harmonised rules to prevent and manage bank crises in all European countries, came into force more than four years ago. The bail-in, the mechanism for sharing the cost of a crisis with a bank's creditors, has been in operation for more than three years. During this period, in...
Risk sharing and risk reduction in the euro area banking sector: progress and next steps

18th September 2018

The mantra of the European authorities when talking about the completion of the Banking Union is that there needs to be risk reduction in the banking sector before introducing further mechanisms of risk sharing. What form of risk sharing might this take and what are the risks that banks need to reduce? Risk sharing according to the European...
Towards a CFO-CRO collaboration model: the real challenges for banks

24th May 2018

Bank internal functions related to risk (CRO) and finance (CFO) nowadays have become key actors for a huge amount of regulatory and management/market requirements. Recent regulatory requirements, for instance, ask banks to develop comprehensive stress exercises which necessarily involve skills from risk management, planning and accounting...
Basel update: Where do we stand?

23rd April 2018

At the end of last year the Basel Committee on Banking Supervision (BCBS) announced the final rules that completed the Basel 3 reforms. Basel 4 - as the latest incarnation has since become known as - was presented at the time by Mario Draghi as “the end of the game”. A key objective of the revisions is to reduce the excessive...
Macro prudential stress testing: Monitoring the financial system Pt.2

31st October 2017

EU-wide stress tests of the EBA chiefly represent a micro prudential and severe assessment of the solvency of the individual banks monitored by the ECB, useful for preventive actions in specific situations. This is an extremely useful test, although insufficient per se from the perspective of the supervisory authorities. As explained...
Macro prudential stress testing: "Monitoring" the European financial system

25th October 2017

The most original innovations often stem from necessity or are born for the purposes of overcoming unforeseen difficulties. This is the case for macro prudential stress tests, namely a set of analysis techniques used by financial supervisory authorities since the great global financial crisis in 2007-2009. This approach has resulted in the...