Achieving robust compliance: How 4most supported a Tier 1 Bank through ECB OSI remediation

Institutions remediating findings from onsite inspections conducted by the European Central Bank (ECB) face numerous challenges, particularly the strict timelines for corrective actions. These inspections cover a wide range of areas, from provisioning to governance practices. As a result, institutions must find a balance between ensuring compliance and maintaining their regular business operations.

Enter 4most

Over the last 2 years, 4most have been supporting a Tier 1 Bank with an extensive improvement plan in response to increasing regulatory scrutiny of their impairment models and processes following on-site inspections from the Joint Supervisory Team (JST).

Objectives of the project

Findings from the JST’s inspection revealed that the bank needed to:

• Conduct a review of their macro modelling framework.
• Make improvements to staging and its effectiveness.
• Completely redevelop and enhance model monitoring and non-retail and mortgage loss given default (LGD) models.

The 4most approach

4most deployed a team of industry experts across multiple workstreams to ensure the successful delivery of the outlined objectives while meeting stringent and time-sensitive regulatory deadlines. The work was carried out in close collaboration with the Bank’s existing teams to ensure effective and compliant delivery, while also transferring knowledge beneficial for long-term, sustainable success.

To support and coordinate across various workstreams and alleviate pressure on senior stakeholders at the Bank, 4most provided Partner-level support along with project management office (PMO) capabilities. This ensured that delivery remained on track and the Bank could meet all regulatory timelines, while also allowing time for second line of defence and audit review.

A picture-perfect finish

All remediation work was delivered to the highest standards which meant the regulator was able to close off all issues identified during the JST’s initial inspection.

Due to the successful delivery of this project and the positive outcomes of the remediation, the bank has initiated an ongoing improvement plan to further enhance their models to ensure they remain compliant and fit for purpose. 4most continues to actively engage in supporting the bank throughout this process.

Get in touch

Get in touch If you are interested in learning more about how 4most can support your organisation navigate the evolving regulatory landscape within the EU – info@4-most.co.uk.