DUBLIN, Calif., April 17, 2012 /PRNewswire/ -- Almost seven out of 10 (68 percent) North American capital markets executives believe a significant portion of their firms' resources will be consumed by regulatory burdens and data latency issues, while 96 percent admit that stress testing has not addressed all the important risks to the banking system, according to a recent survey by Sybase Inc., an SAP® Company (NYSE: SAP) and a leading provider of enterprise and mobile software.
"Regulatory challenges coupled with rapid data growth and the 'urge to merge' call for world-class, innovative technology that can consistently meet the demanding high-performance standards of today's capital markets firms," said Neil McGovern, senior director of financial services marketing, Sybase, an SAP company. "Customers facing regulatory challenges are required to collate very large amounts of data on-demand to meet intra-day regulatory requirements. This is why institutions need real-time predictive analytics solutions capable of streamlining and maximizing this complex function."
A similar survey was conducted across the EMEA and APAC regions that showed similar findings. In EMEA, 41 percent cited regulatory burdens, followed by data latency (31 percent) and front-middle-back office integration (27 percent). Executives surveyed in APAC, however, believe that front-middle-back office integration (45 percent) is the number one challenge, while 30 percent cited data latency followed by regulatory burden (25 percent).
With regard to the reliability of bank system stress testing, a combined 96 percent of North American respondents were only "somewhat confident" or even "not at all confident" that stress testing has addressed all the important risks to the banking system, compared to 93 percent in EMEA and 86 percent in APAC. When asked about the preferred frequency of stress testing, interestingly nearly half of North American respondents (46 percent) believe stress testing should be conducted at least once every six months, while 42 percent believe that stress testing should be performed once a year. Majority of EMEA and APAC respondents – 68 percent and 60 percent respectively prefer more frequent stress tests –at least once every six months.