Bank management in turbulent times

A look at the challenges regional banks will be facing in 2024

The significant rise in interest rates since the beginning of 2022 gives banks new hope for high net interest income and operating profits.

One thing is clear: the turnaround in interest rates benefits the business model of regional banks. So far, most institutions have managed to keep deposit terms and thus interest expenses reasonable, while interest income is back at an elevated level.

But what is actually happening in the bank balance sheets at the moment and what does this mean for the two different risk perspectives being implemented for the banks’ internal capital assessment (ICAAP)?

How can the scarce resource of equity be managed?

How are banks dealing with current regulatory requirements?

How can sustainability actually be implemented in bank management? 

And what changes is the supervisory authority planning in the audit practice of banks?

In this paper, you will find out what banks need to do and how they can tackle the resulting challenges (German only).