As banks are perceived to be offering identical products and services, how does the Board/ Top Management set about differentiating their bank from others, unless they have such basic granular details? Under RBS, it is essential for the banks to have the capability and infrastructure to support a robust and reliable MIS architecture, with data integrity.
In particular, in the event of an adverse shock, this capital buffer can be released, thereby mitigating the damaging pro-cyclical withdrawal of credit supply under adverse conditions. In relation to new mortgage lending, our borrower-based measures that impose (flexible) ceilings on loan-to-income (LTI) and loan-to-value (LTV) ratios have built-in features that limit pro-cyclical dynamics.