Category Archives: Operational Risk & Regulation

OPERATIONAL RISK & REGULATION: Fraud and economic pressure are problems for Brazil’s small banks

Seven bank interventions, including major cases of fraud, have rocked Brazil’s small- and medium-sized bank sector. Investors are calling into question everything from their business model and costs of funding through to corporate governance standards, the efficacy of their accountants … Continue reading

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OPERATIONAL RISK: Latin banks plug gaps in reputational risk

There are numerous stories of Latin banks facing runs after their reputation crashed, often causing ripples that spread across the sector. Just last year, Brazil’s mid-sized Banco PanAmericano was investigated by the Central Bank for accounting irregularities and forced into … Continue reading

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OPERATIONAL RISK & REGULATION: Brazil announces oprisk timeframe, stirs polemic

Brazilian risk experts are divided over the feasibility of the start date for applying for advanced measurement approaches (AMA) in operational risk put out by the Central Bank of Brazil. Some argue that the timeframe is too tight, falls too … Continue reading

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OPERATIONAL RISK & REGULATION: Brazilian banks and governance

A FAMILIAR FOE Brazil’s banks are generally family-owned, so they’ve escaped the pressure to meet shareholder demands for short-term gain. But if governance is to improve in the country, this entrenched family culture will need to be opened up to … Continue reading

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Brazil: Real change in preparation for Basel 2

Brazil is justifiably proud of the progress it had made in the implementation of Basel II, due for completion in 2013. However, a sudden increase in lending is raising a host of data issues and diverting management’s attention away from … Continue reading

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Op risk centre stage

Strict bank oversight and isolation from the global banking community means Brazilian banks are insulated from the worst of the crisis, but they are not immune. Domingos Figueiredo de Abreu, executive director at Bradesco, talks to John Rumsey about the … Continue reading

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Brazil: white-collar crime rising

Brazil may be losing a whopping 6% of its GDP thanks to white-collar crime, making it one of the most exposed countries in the world to fraud, according to a recent report by KPMG. Of the countries that have reported … Continue reading

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Risk pros in high demand in Latin America

LATIN AMERICA – Banks in Latin America are expanding their teams of risk professionals, and are paying up to do so, as they get to grips with Basel II and a rapid expansion in credit that demands focused control on … Continue reading

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Latin America cherry-picks from Sarbanes-Oxley

LATIN AMERICA – As the world continues to struggle with Sarbanes-Oxley (Sox), much of Latin America has adopted an approach of self-regulation and disclosure. Mexico and Brazil, the two biggest markets in the region, work within this structure although Mexico … Continue reading

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Latin microfinance market wakes up to risk mitigation

LATIN AMERICA – The Latin American microfinance scene is growing fast, and institutions and donors are waking up to the operational risks embedded in the business. As competition from commercial banks for this lucrative business heats up, donors are starting … Continue reading

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