transfer - Blog - Global Risk Community2024-03-28T15:39:43Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/transferAn Interview with UBS: The Impact of COVID on Balance Sheet Structureshttps://globalriskcommunity.com/profiles/blogs/an-interview-with-ubs-the-impact-of-covid-on-balance-sheet-struct2021-09-29T20:21:56.000Z2021-09-29T20:21:56.000ZRia Kiayiahttps://globalriskcommunity.com/members/RiaKiayia<div><img src="https://storage.ning.com/topology/rest/1.0/file/get/9624910470?profile=RESIZE_400x&width=200"></div><div><div id="lp-pom-text-147" class="lp-element lp-pom-text nlh"><p class="lplh-42">An Interview with Erkka Pesonen, Director, ALM Risk Management and FTP, at UBS</p></div><div id="lp-pom-text-148" class="lp-element lp-pom-text nlh"><p>Ahead of the <a href="https://www.marcusevans.com/conferences/ftpmanagement?utm_source=media+partner&utm_medium=grc+blog+post&utm_campaign=CM488+-+grc" target="_blank">11th Annual Funds Transfer Pricing and Balance Sheet Management</a> Conference, we spoke with Erkka Pesonen, Director of ALM Risk Management and FTP at UBS. Erkka works in the Group Treasury ALM team, responsible for FTP setting and methodology and interest rate risk hedging. Prior to his current role Erkka has worked in Treasury cash trading and Treasury funding roles at UBS. He has over ten years of Treasury and Finance experience at UBS in Switzerland and the UK. Erkka has a BSc in Economics from the London School of Economics and he is FCA certified (CISI certification).</p><p><strong>How has the impact of Covid-19 affected balance sheet structures?</strong></p><p>The low rate and credit spread environment post Covid-19 turbulence has been beneficial for issuers. Group Treasuries across the board have printed farther out the curve to benefit from relative flat tenor extension cost. Companies seem to also have taken this opportunity to issue more than planned, as total issuance volumes are reaching record highs this year. Banks have seen deposit growth in ring-fenced entities where customers have been holding cash surpluses as a consequence of COVID related constraints.</p><p><strong>Do the challenges around balance sheet structure vary across different jurisdictions?</strong></p><p>Local regulators impose their interpretation of the Basel requirements and their expert local judgement to their jurisdictions which can create varying binding constraints within a Group. Such variations need to be layered into the internal pricing to accurately reflect the cost of liquidity, funding and capital – which can create a trade-off between technical complexity and pricing/signalling effectiveness.</p><p><strong>Has the product mix need to optimise RWA changed across the last couple of years?</strong></p><p>RWA optimisation is driving constant assessment of the return on capital across the industry – from Risk or Leverage driving the capital requirement, through to other optimisation initiatives and the product mix.</p><p><strong>What could be some future trends with balance sheet structure going forward?</strong></p><p>Main themes will likely remain around optimisation of Liquidity and Funding Metrics, LRD and RWA while navigating the low interest rate environment – and enabling FTP incentivisation mechanisms to account for them.</p><p><strong>What do you hope to gain by attending the Funds Transfer Pricing and Balance Sheet Management event?</strong></p><p>I found the presentations, discussions and the materials that were shared afterwards extremely valuable to take back with me and discuss with my colleagues. I gained new insights to Bank Treasuries’ thoughts on how to best approach regulatory requirements, balance sheet modelling and optimisation.</p><div id="lp-pom-text-189" class="lp-element lp-pom-text nlh"><p><strong>Erkka will be presenting during Day Two!</strong></p></div><div id="lp-pom-box-204" class="lp-element lp-pom-box"><h4><strong>Achieve optimal balance sheet structure in the era of COVID-19</strong></h4><ul><li>Build a balance sheet that takes into account different regulations, focus points and geographies</li><li>Product mix on the balance sheet to optimise RWA: Prioritise products with a low cost of capital </li><li>Examine what the balance sheet looks like on the liability side: Are deposits floored?</li></ul></div><p>For more information about the event, please visit <a href="https://bit.ly/3zUfFpE%C2%A0or">https://bit.ly/3zUfFpE or</a> contact:</p><p>Ria Kiayia, Digital Media and PR Marketing Executive</p><p>T: +357 22849 404<br />E: riak@marcusevanscy.com</p></div></div>All You Need To Know About Wireless Charging And The Emerging Trendshttps://globalriskcommunity.com/profiles/blogs/all-you-need-to-know-about-wireless-charging-and-the-emerging2020-05-18T11:21:30.000Z2020-05-18T11:21:30.000ZKBV Researchhttps://globalriskcommunity.com/members/KBVResearch<div><p>Wireless charging, also known as wireless power transfer (WPT), is commonly used in compact and wearable electronic products such as laptops, athletic bands, shavers, and electric toothbrushes. However,<span> </span><a href="https://www.kbvresearch.com/wireless-charging-market/">Wireless charging</a><span> </span>also has benefits for commercial applications. Industrial technologies include electric motors, robots, warehouse automation, mobile terminals, contactless loading of subsea vehicles, and many more.</p><p></p><p><a href="{{#staticFileLink}}8028319857,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028319857,original{{/staticFileLink}}" class="align-center" alt="8028319857?profile=original" /></a></p><p></p><p>Wireless charging can be found anywhere, in smartphones and IoT devices, but most notably in medical equipment. This is one business that can be changed with the use of chargers. Then there are the electric vehicles (EVs), which will benefit from the technology. The network must have been easy to set up. Not unexpectedly, the first uses of electromagnetic induction were for automobiles, but internal combustion engines were more common.</p><p></p><h2><strong>Wireless charging: What, Why, and How?</strong></h2><h3><strong>What is wireless charging?</strong></h3><p>Any wireless charging technology consists of two parts, a transmitter (the actual charging station) and a receiver. The receiver collects the transmitted energy and then charges the battery to the device. When individual electronic devices are growing in number and decreasing in scale, the need for a more efficient charging method is becoming increasingly common.</p><p></p><p>Inductive charging uses the electromagnetic field produced by the magnetic coil to cause voltage in the receiver within the device. This voltage is used to charge the battery. A form of wireless charging is most often used on charging pads, such as the tablet you may have on your computer. This technology, however, is by no means modern. For example, many electrical toothbrushes use induction to charge wirelessly. For induction, both the unit and the charging pad must have the coils to move the power wirelessly.</p><p></p><h3><strong>Why do we need wireless charging?</strong></h3><p>The biggest benefit of wireless charging lies in the phrase-wireless. For wireless charging, you reduce the congestion of charging cords and restrict it to only the power cord of the charging pad. You don't need to worry about the issue of plugging in your wire, either-just place your phone on the charging pad and start charging right away. Advanced development implementations are now getting interesting. Manufacturers like Huawei and Samsung are introducing reverse wireless charging, enabling phones to charge other phones and smaller devices wirelessly.</p><p></p><h3><strong>The functionalities of wireless charging</strong></h3><p>Essentially, wireless charging uses a loop of coiled wires circling a bar magnet — known as an inductor. As the electrical current travels through the coiled wire, it generates an electromagnetic field around the magnet, which can then be used to shift the voltage or charge to anything nearby.</p><p></p><p>Most wireless power stations still use a pad with an inductor inside, while electronic toothbrushes, for example, have long had wireless charging installed on their bases. As the intensity of the electromagnetic field decreases dramatically at a distance (as the square of the distance between the objects), the system must be very close to the charging station in order to get a lot of power this way.</p><p></p><p>However, although the fundamental principle of wireless charging has been known for more than 100 years, scientists have not yet developed a method of efficiently transmitting vast quantities of electricity using this technique. The amount of electrical charge transmitted is proportional to the number of coils that can be looped around the small bar magnet as well as the magnet power. Before recently, cables and devices could not be made lightweight enough and inexpensive enough to make wireless charging viable.</p><p></p><h2><strong>Industries standing on the receiving end of advancements in wireless charging:</strong></h2><h3><strong>Automotive</strong></h3><p>Vehicle pollution has been a significant source of air pollution-induced diseases. And this induces worldwide demand for the electric vehicle. However, if most of the electric cars on the market today will need to be plugged in for recharging, wireless charging will soon change that.</p><p></p><p>Since people normally park their vehicles in one place, such as a garage or a parking space, electric cars may use wireless charging from that space. Electric vehicles (EVs) are another area in which wireless charging will revolutionize the technologies used. Nevertheless, while the industry has taken several strides forward, EVs are still trapped in the production process.</p><p></p><h3><strong>Electronics</strong></h3><p>Using wireless charging to charge your cell phone is perhaps the most common use for inductive wireless charging today since this form of wireless charging works better with larger and flat surface devices. Because of this, you can only place your phone down on a charging pad without having to plug it in.</p><p></p><p>Technical developments in mobile devices, such as integrated wireless charging technologies, build awareness among customers of wireless charging. The number of mobile device manufacturers who incorporate the wireless charging feature in a smartphone, wearable, laptop, and notebook high-end models is growing, accelerating the adoption of wireless charging technologies.</p><p></p><h3><strong>Healthcare</strong></h3><p>Wearables and other portable gadgets work well for (radio frequency) RF wireless charging because they are not limited to the scale and form of the coils in the same manner because of inductive charging. As wearables become more and more common, it becomes more and more irritating to have yet another wire or rope in our lives. That is where wireless charging comes in.</p><p></p><p>The implantable medical devices market has a very significant place in the healthcare industry. These machines that are used as hip, knee, or heart implants now use a wireless charger, which further reinforces the demand for wireless charging. Several cardiac devices use implanted battery packs, such as pacemakers. Others, such as cardiac assist pumps, use wires to provide the device with energy. Such wires tend to cross the barrier to the skin and are at risk of being removed. The areas where the surface layer is breached by the wire are also at high risk for bacterial contamination. A modern, wireless solution will have tremendous benefits for this area.</p><p></p><h2><strong>What’s trending in the industry?</strong></h2><h3><strong>Qi technology</strong></h3><p>The number of uses for wireless charging is increasing exponentially – as is the number of devices with wireless charging capabilities. Qi technology from the Wireless Power Consortium (WPC) tends to be the industry leader. In addition to Qi technology, radiofrequency (RF) and infrared (IR) technologies are also becoming increasingly prevalent.</p><p></p><h3><strong>Wireless-charging-enabled smartphones</strong></h3><p>Wireless charging is the norm these days and everyone makes some amazing wireless charging mobiles due to wireless charging that is compliant with phones. The adoption of wireless charging technology has been gaining pace and is being deployed in many devices, particularly with smartphones following Apple’s commitment in 2018, and this adoption rate is much higher than Bluetooth’s adoption into technology. Wireless charging systems now make up nearly half of the high-end smartphones sold, and that innovation is now in the hands of the consumers and employees.</p><p></p><h3><strong>Copper in EV charging</strong></h3><p>While the appeal of electric cars continues to grow, the rising competition also highlights the charging problems faced by owners. Charge stations are not easily accessible or available, so many of them allow the driver to link the cable to the vehicle. Nevertheless, in comparison to liquid fuels, electrical electricity does not require a physical connection to the vehicle, and as wireless charging technology advances, it would be easy to charge in several more locations without using cables.</p><p></p><p>Wireless charging is an important part of the transition to the future, where hybrid vehicles predominate. High-power, high-speed chargers can be important for anyone commuting long distances, but for regular everyday driving, the option to quickly recharge the batteries while shopping, working, or visiting a restaurant is a convenience.</p><p></p><h2><strong>Summing up</strong></h2><p>The wireless charging market is becoming increasingly mainstream as more companies begin to integrate technology into their products. Even though wireless charging is slow to catch on the market, Samsung and several Android vendors have already started incorporating it into their smartphones, and Apple is believed to be focusing on wireless charging functionality as well. Places like Ikea and Starbucks have already started to incorporate wireless charging pads into their services.</p><p></p><p><strong>Free Valuable Insights:</strong><span> </span><a href="https://www.kbvresearch.com/news/wireless-charging-market/">Global Wireless Charging Market to reach a market size of USD 25.6 billion by 2026</a></p><p></p><p>Wireless charging is approaching a turning point. It's no longer just about setting a mobile on a pad; now it is all about the next wave of applications. It may take some time, but wireless charging is undoubtedly on the horizon. So next time an individual learns of wireless charging, they can associate the trends with potential devices, be it wearables or IoT apps that are easily or wirelessly connected to the charging stations part of your daily life.</p></div>An interview with mBank: Funds Transfer Pricing frameworks to account for new IRRBB and capital regulationshttps://globalriskcommunity.com/profiles/blogs/an-interview-with-mbank-funds-transfer-pricing-frameworks-to2016-08-29T12:30:00.000Z2016-08-29T12:30:00.000ZMelini Hadjitheorihttps://globalriskcommunity.com/members/MeliniHadjitheori<div><p>Considering the current climate is loaded with regulatory and market changes, funds transfer pricing frameworks must be adapted in such a way to account for this without losing competitive edge. In order to optimise the practice of FTP, banks need to understand how it can be implemented alongside evolving regulations and market changes. This marcus evans conference will show banks how to shape their FTP methodologies according to regulations such as the liquidity and capital regulations and apply these methods to the products they offer.</p><p>Ahead of <strong>the 6th Annual Funds Transfer Pricing and Balance Sheet Management conference,</strong> we spoke with Mrs. Monika Bączyńska, Head of ALM at mBank about the IRRBB regulations affecting FTP management.</p><p style="text-align:center;"><strong>READ THE INTERVIEW <a href="http://bit.ly/2c39ZQX" target="_blank">HERE</a></strong></p><p>About the speaker:<br /> Monika Bączyńska is a Head of ALM at mBank. Monika has extensive experience in managing both interest rate risk of banking book and liquidity risk, FTP rules and hedge accounting. She is also responsible for development of funding strategy as well as planning and forecasting. Before joining ALM, Monika was a Director of Analysis and Control Bureau, responsible for controlling and risk functions for Financial Market Division. She served as an advisor in FX position transfer models and accounting schemes for structured products with embedded options. Monika participated in a number of projects related to FTP policy, capital model, liquidity risk models, stress-testing, MIS and RWA optimization. Prior to joining mBank, she served as an auditor of financial institutions with EY. Monika is a CFA charter holder and Professional Risk Manager.</p><p class="lplh-32"><span><span><span><span>About the conference:<br /></span></span></span></span> This marcus evans event will provide banks with a platform to learn from practical examples of how others are already incorporating the liquidity and capital regulations into their FTP models as well as insight into future developments. Furthermore, we will build on previous years by providing expert speakers to demonstrate how to adapt FTP methodologies to suit negative interest rates and forthcoming interest rate risk regulations as well as best practices. The <strong>6th Annual Funds Transfer Pricing and Balance Sheet Management conference</strong> will take place from the 14th to 16th September 2016 in London, United Kingdom.</p><div class="lp-element lp-pom-text nlh" id="lp-pom-text-206"><div class="lplh-22" style="text-align:center;"><strong>READ THE INTERVIEW <a href="http://bit.ly/2c39ZQX" target="_blank">HERE</a></strong></div><div class="lplh-22"></div><div class="lplh-22"><p>For more information about the event, please contact:<br /> Melini Hadjitheori<br /> T: +357 22849 308<br /> E: MeliniH@marcusevanscy.com</p></div></div></div>Interview with Kent Westerbeck, President at Westerbeck Risk Managementhttps://globalriskcommunity.com/profiles/blogs/interview-with-kent-westerbeck-president-at-westerbeck-risk2012-05-03T14:45:09.000Z2012-05-03T14:45:09.000ZMichele Westergaardhttps://globalriskcommunity.com/members/MicheleWestergaard<div><p>Managing a profitable balance sheet is more challenging than ever. With Basel III and the more immediate Dodd-Frank regulation on the horizon, a tool such as FTP is vital to ensure an effective centrally managed liquidity strategy. Post-crisis, whilst the economic situation is improving, allocating sufficient liquidity costs quickly and efficiently to the correct business-line is paramount.</p><p>Kent Westerbeck formed the Westerbeck Risk Management consulting company in 2007 after retiring from LaSalle Bank, a subsidiary of ABN AMRO NV. Mr. Westerbeck managed the interest rate risk of LaSalle’s balance sheet and their mortgage servicing rights portfolio and he advised on LaSalle’s transfer pricing process.</p><p><b>Why has FTP become a focus in recent times?</b></p><p><b>KW:</b> FTP has always been a key to properly pricing products, and evaluating the profitability of customer relationships and business lines within the financial institution.</p><p>The importance of these processes has increased as financial institutions face lower profitability levels and the need to respond to current low interest rates and mounting regulatory challenges.</p><p>What are the key challenges surrounding FTP and Balance Sheet Management in the current financial environment?</p><p><b>KW:</b> As rates have fallen new product pricing challenges have arisen.</p><ol><li>Rates on non-maturity deposits are near zero but even so, the rates that one can earn when investing these balances have fallen further and the margins on these products have declined. These products frequently have gone from very profitable to unprofitable. This fundamental shift in the profitability of non-maturity deposit products cannot be appreciated unless one properly transfer prices them.</li><li>The current lower rates have generated a lot of customer interest in fixed rate borrowing. Since most financial institutions are in need of fixed rate assets to offset the risk of their non-maturity deposits, this seems like an ideal situation.</li></ol><p>Good transfer pricing is needed in order to properly price these new fixed rate term loans.</p><p>When good transfer prices are used, one frequently finds that the rates needed on new fixed rate term loans to produce the same profitability as the floating rate term loans they are replacing are very hard to sell to the customers.</p><p>So, the bank is faced with the decision to:</p><ol><li>Convince the customer to accept the break-even pricing on the new fixed rate term loans (while competitors without the same pricing discipline may be providing more attractive pricing)</li><li>Accept lower profitability on new fixed rate term loans than they were used to getting from the customer.</li><li>Seek fixed rate term assets needed to manage overall balance sheet risk elsewhere, e.g., in the investment portfolio or through use of derivatives (which present their own issues --- accounting challenges and fear of derivatives)A) B) </li><li>Attaching floors to floating rate loans has helped deal with the issue of falling rates. However, transfer pricing of any instrument that includes an option, like a loan that includes a floor, is particularly problematic.</li></ol><p><b>What areas of FTP and Balance Sheet Management can banks really improve on and how will this help them?</b></p><p><b>KW:</b> Creating a transfer pricing system where the transfer pricing and interest rate risk assessment are in synch is critical.</p><p>When a product’s transfer pricing does not match its interest rate risk assessment, problems will occur. The interest rate risk of the item will direct the interest rate risk manager how to invest (or fund) the product. This will generate profitability that is reflective of the interest rate risk assessment. When the transfer pricing process implies a different risk and a different level of profitability, the institution will miss-assess the true profitability of the product and make poor pricing and product management decisions.</p><p><b>How do you see FTP and balance sheet management developing in the future?</b></p><p><b>KW:</b> It is very important that the transfer pricing system be a joint venture between the Treasury and the lines of business. Transfer pricing must be established in an open environment where the financial logic of the process can be understood.</p><p>Without this open discussion the business lines are likely to feel that the transfer pricing decisions are arbitrary and designed to enrich the Treasury and penalize the lines of business.</p><p>Hence the people and committee managing the transfer pricing process must be perceived as intellectually honest and financially sophisticated.</p><p>Developing these skills requires training and discussion of the subject with peers.</p><p><b>What do you believe attendees can gain most from attending our event?</b></p><p><b>KW:</b> Attendees can learn:</p><ol><li>The appropriate thought process for establishing transfer prices</li><li>The importance of tying together transfer pricing and interest rate risk measurement and</li><li>The key role transfer pricing plays in:<ol><li>Pricing products</li><li>Assessing the profitability of customers and lines of business</li></ol></li></ol><p>Kent Westerbeck will be a speaker at the marcus evans before the forthcoming <a href="http://www.marcusevansch.com/FTP_InterviewKW" target="_blank">Funds Transfer Pricing and Balance Sheet Management Conference</a>, June 11-13, 2012 in New York City, NY.</p><p>For more information please contact Michele Westergaard, Senior Marketing Manager, Media & PR, marcus evans at 312-540-3000 ext. 6625 or <a href="mailto:Michelew@marcusevansch.com">Michelew@marcusevansch.com</a>.</p><p><b>About marcus evans</b></p><p><i>marcus evans</i> <i>conferences annually produce over 2,000 high quality events designed to provide key strategic business information, best practice and networking opportunities for senior industry decision-makers. Our global reach is utilized to attract over 30,000 speakers annually, ensuring niche focused subject matter presented directly by practitioners and a diversity of information to assist our clients in adopting best practice in all business disciplines.</i></p></div>