A new Sybase survey shows that more than nine out of 10 capital markets executives lack confidence in bank stress testing, while more than 75% are struggling to capture trading system data. The survey of 50 senior managers and C-suite risk management professionals from major capital markets firms was conducted at Sybase's Financial Services Executive Summit titled "Shaping the Financial Industry of the Future" held on October 18 in London.
When asked about the reliability and frequency of bank system stress testing, a combined 94% of respondents were either not at all confident or only somewhat confident that stress testing has addressed all the important risks to the banking system. Directly related, more than eight out of 10 executives surveyed (84%) believe stress testing should be upped to at least every 6 months. Currently, EU regulators carry out yearly stress tests on the biggest lenders in the region.
Three out of four respondents (76%) said they struggle to capture data from trading systems for audit, compliance or future analytical purposes. At the same time, 75% believe data latency and regulatory challenges will consume the most significant portion of their firm's resources, followed by front/middle/back office integration (25%). "Merging front and middle office in particular presents numerous challenges, yet they are clearly outweighed by the business benefits. These lines will only continue to blur," says Stuart Grant, financial services business development manager at Sybase.
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