In their pursuit of further growth aligned to improved risk management controls, Jaywing was appointed to help develop and embed new methodologies for stress testing and assessing capital adequacy.

Increasing regulatory demands on small banks via their ICAAP and SREP poses new challenges to firms who need to be able to actively identify, understand and manage all aspects of risk that their organisation faces in the running of their business. In particular, more emphasis is placed by the regulators on firms’ stress testing capabilities and their ability to quantify the impact of adverse economic conditions on their capital requirements.

Jaywing has helped HTB improve their credit risk modelling capability enabling the delivery of higher quality management information, and robust stress testing models that can be used alongside the depth of expertise within the internal teams to support improved assessment of portfolio losses in downturn conditions. This has played a key role in shaping HTB’s 2018 ICAAP exercise and in improving credit risk modelling.

Moreover, the work on the ICAAP is just one part of significant advancements in risk management practices at HTB, changes that will undergo continuous future improvement due to training provided at different levels across the organisation to embed the changes operationally and culturally.

Hampshire Trust Banks’s Chief Financial Officer, Tim Blackwell, said, “Jaywing has significant experience in credit risk modelling, stress testing and capital planning. What made them stand out was their knowledge of ICAAP requirements, their client engagement approach and their commitment to deliver on all aspects of the plan, collaborating seamlessly with the internal teams and supporting us on our journey of continuous improvement and development.”

Ben O’Brien, Managing Director, Jaywing, said: “Regulatory demand processes can be time-consuming, complicated and frustrating for businesses, which is why firms such as Hampshire Trust Bank are implementing our expertise and guidance to ensure their credit risk models are consistently accurate. We are delighted to partner with HTB to create more streamlined and efficient processes.”

Jaywing has over eighteen years’ experience in credit risk analytics, helping lenders such as Nationwide, RBS and Coventry Building Society with IFRS 9, IRB, stress testing, ICAAP and credit grading requirements.