Almost seven out of 10 (68%) North American capital markets executives believe a significant portion of their firms' resources will be consumed by regulatory burdens and data latency issues, while 96% feel that stress testing has not addressed all the important risks to the banking system, according to a recent survey by Sybase Inc., an SAP Company. A survey was also conducted across the EMEA and APAC regions that showed similar findings.
With regard to the reliability of bank system stress testing, a combined 96% of North American respondents were only "somewhat confident" or even "not at all confident" that stress testing has addressed all the important risks to the banking system, compared to 93% in EMEA and 86% in APAC.
Sybase says that 185 respondents participated in the survey which was conducted over the past six months. The survey respondents consist of 50 North American senior managers and C-suite risk management professionals from major capital markets firms, 72 from EMEA, and 63 from APAC.
When asked about the preferred frequency of stress testing, Sybase says, nearly half of North American respondents (46%) said they believe stress testing should be conducted at least once every six months, while 42% said that stress testing should be performed once a year. The majority of EMEA and APAC respondents - 68% and 60% respectively indicated they prefer more frequent stress tests - at least once every six months.
"Regulatory challenges coupled with rapid data growth and the 'urge to merge' call for world-class, innovative technology that can consistently meet the demanding high-performance standards of today's capital markets firms," said Neil McGovern, senior director of financial services marketing, Sybase. "Customers facing regulatory challenges are required to collate very large amounts of data on-demand to meet intra-day regulatory requirements. This is why institutions need real-time predictive analytics solutions capable of streamlining and maximizing this complex function."
For more information on Sybase's Capital Markets industry solutions, visit www.sybase.com/capitalmarkets,