Use case / banks
Regulatory simulation for banks and sponsor institutions
Banks carry the consequence of decisions their partners make. Every new programme, product or partner changes something about the institution's own position — and approval committees are asked to weigh that with incomplete information.
Reglator gives the committee a testable view: what this programme would change, what the alternatives would change, and where the answer depends on judgement.
Who this is for
Institutions that carry the decision
Regulatory simulation is used by the people who own the decision, not only the function that documents it.
Sponsor and partner banks
Community banks entering new activities
Programme risk and new-activity committees
Bank strategy and corporate development teams
Decisions tested
The questions this answers
Should we approve this programme?
The question is what the programme changes about the bank, not only about the partner.
Should we add a new activity?
New activity can move requirements across the whole institution.
Should we change concentration or scale?
The same programme at ten times the volume is not the same decision.
Should we exit or restructure a programme?
Unwinding has its own consequence profile.
Regulatory delta
What tends to move
A Regulatory Delta is the potential change in the institution's regulatory position resulting from the decision. These are the areas that most often move here.
- Activity
- What the institution would be doing.
- Permissions
- Whether the activity fits existing authority.
- Governance
- What the board and committees would need to see.
- Controls
- What the operating model must demonstrate.
- Concentration
- How scale changes the position.
- Judgement
- Where supervisory expectation is the deciding factor.
Outputs
What you receive
- A committee-ready view of what a programme would change
- Comparison of approve, restructure and decline paths
- A durable record of the basis for the decision
- Re-testing as programmes and regulation change
Decision library
Related decisions
Common questions
Questions this page answers
Is this a replacement for the new-activity process?
No. It supplies the analysis that process depends on, earlier and in a form that can be compared and revisited.
Can a bank re-test approved programmes?
Yes. Continuous regulatory testing re-runs a live operating model as products, partners, scale and regulation change.
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