Decision / Operating model
Approving a new bank programme
What would this programme change about the bank?
Committees are asked to approve programmes on the basis of the partner's plan. The question they actually have to answer is what the programme would change about the bank.
Simulation produces that view, with alternatives, so approve, restructure and decline can be compared on the same basis.
Regulatory delta
What this decision tends to move
The delta is the difference between the institution's position today and its position if this decision were executed.
- Activity
- What the bank would be doing.
- Permissions
- Whether it fits existing authority.
- Governance
- What oversight the programme requires.
- Concentration
- How the programme changes exposure.
- Judgement
- Where supervisory expectation decides.
Design space
Ways to reach the same commercial objective
Two configurations that achieve the same outcome frequently produce materially different regulatory deltas. Comparing them is how the decision is made.
Option 01
Approve as proposed
Full delta accepted.
Option 02
Approve with structural conditions
Delta reduced deliberately.
Option 03
Decline or defer
Delta avoided, opportunity cost taken.
Before committing
What management should establish first
- What changes about the bank, in plain terms
- Which conditions would reduce the delta most
- What would need re-testing after launch
Common questions
Questions this page answers
Does this replace the bank's own risk assessment?
No. It supplies comparable options and a record of what was tested, earlier in the process.
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