The paper is intended to provide useful, educational reading for actuaries working in the banking industry, both as a reference point and for purposes of continuous professional development (CPD). It may also be useful for non-actuaries working in banking risk management, actuaries considering working in banking, and actuarial associations considering an involvement in the domain of banking. The paper highlights areas where actuaries are already involved, and areas where they may become involved.
We believe that this paper fills a gap that no similar paper on actuarial practice in banking has addressed.
The paper draws on the developments in recent years in a number of jurisdictions around the world where actuaries are increasingly involved in banking. It illustrates the application of actuarial techniques in banking in different jurisdictions, including South Africa, Australia, North America and the United Kingdom. With appropriate amendments, the techniques may prove useful when applied to requirements of national, regional or supranational regulatory requirements such as those of the Basel Committee on Banking Supervision.
This is a working paper, which is expected to be reviewed and updated over time as more techniques in banking relevant to actuaries are developed and/or identified.
