Promontory’s business in China is led by former Deputy U.S. Treasury Secretary Frank Newman, chairman of Promontory China, and Bing Yu, managing director and general manager. Prior to joining Promontory, Mr. Newman was chairman and chief executive of Shenzhen Development Bank, a national bank based in Shenzhen, China. Ms. Yu joins Promontory from a large global consultancy, where she headed the financial risk management advisory practice in mainland China.
What We Do
China’s financial industry has undergone significant changes and is now home to many institutions. The operating environment for banks in China and the region has become increasingly competitive and complex. Market-driven policies, and new forms of banking facilitated by new technology, have pressured banks to innovate and focus on the customer experience. Tightened regulatory requirements have substantially raised compliance costs.
Promontory China is a growing team of professionals who specialize in advising financial institutions and corporations on complex risks. Our China team draws on Promontory Financial Group’s worldwide resources — a group of exceptionally experienced professionals, with deep and varied global expertise gained as senior leaders of regulatory bodies, financial institutions, and Fortune 100 corporations.
Promontory China is positioned to help our clients transform and succeed. We guide financial institutions through complicated regulatory requirements and help them meet the evolving demands of customers. We are a closely integrated global firm able to resolve national and cross-border issues in banking, securities, commodities, financial instruments, markets, and insurance. We help companies understand and comply with global and national regulations and legislative directives in jurisdictions throughout North America, Europe, Australia, and Asia, including the Middle East.
Our five services pillars are risk governance and management, regulatory compliance, capital planning and management, asset-liability and liquidity management, and data privacy and information security management. Our advice on regulatory compliance, corporate governance, and risk management is tailored for financial institutions and corporations operating in China (both Chinese and foreign-invested entities) and for Chinese companies considering entering, or already operating in, foreign markets.
- Anti-Money-Laundering (AML), Counter-Terrorist-Financing (CTF), and Sanctions Compliance
Banks and other financial institutions play an important role in combating global money laundering and terrorist financing. Lapses in AML, CTF, and sanctions compliance have led to unprecedented fines and penalties. Promontory’s extensive team of AML and CTF experts has helped financial firms around the world manage these risks and adopt international best practices. We assist clients in enhancing programs and procedures and meeting regulators’ expectations for due diligence and know-your-customer compliance.
- Investigations and Forensic Reviews
Independent investigations and forensic reviews play an important role in locating fraud or diagnosing a control lapse within a corporation. Our investigation and forensic reviews practice is led by individuals with long careers as regulators, auditors, and investigators. We assist board directors and committees, external legal counsel, executive management, regulators, and law enforcement agencies in analyzing facts, determining courses of action, and providing customised solutions. We investigate financial and accounting matters, disclosure violations, employee misconduct, and other types of potential regulatory noncompliance.
Corporate Governance and Risk Management
We provide financial institutions comprehensive corporate governance and management solutions for all risks — including credit, market, and operational. We advise clients on corporate and risk-governance frameworks, structure, policies, and procedure, and help global and regional financial institutions meet new regulatory requirements, such as preparation of recovery and resolution plans.
We are experts in quantitative analysis and help clients build, validate, and embed models that apply to practical business scenarios.
Capital Planning and Management
Determining of capital adequacy combines quantitative analysis and sound business judgment. It includes modeling for credit, market, and operational risks. We help clients evaluate and analyze regulatory and economic capital requirements under various stress scenarios, and build internal capital adequacy assessment process (ICAAP) into an integral part of strategic planning.
Asset-Liability (ALM) and Liquidity Management
ALM and liquidity risk management have become key areas of focus given the threat they pose to financial institutions. We have the experience and resources to help clients assess liquidity risk, prepare for Basel III requirements, and develop practical balance-sheet risk management programs consistent with regulatory expectations. Our experts assist clients in developing enterprisewide stress-testing initiatives and plans for operating through stressed conditions and volatile markets.
Data Privacy and Information Security Management
New privacy and data-protection laws and regulations impose complex compliance requirements on all organizations. We develop practical solutions that allow clients to meet regulatory requirements across multiple jurisdictions. We work closely with regulators, industry groups, and our clients to monitor and analyze new and imminent regulation, including the EU General Data Protection Regulation, the U.S. Consumer Privacy Bill of Rights, and emerging laws and regulation in jurisdictions throughout Asia and South America.
Information security and cybersecurity risk management have become crucial components in the safe and sound operation of financial companies. We have deep experience in financial services technology, operations, and regulation. Our team is uniquely qualified to help companies develop practical cybersecurity programs that meet regulatory requirements and mitigate reputational risk by protect against breaches.
Supported by our integrated global team, Promontory China includes consultants from our Beijing and Hong Kong offices. We help companies manage complex risks and meet their greatest regulatory challenges. We have a deep understanding of the essential factors to consider when devising and implementing compliance and risk management programs, capital and liquidity plans, internal controls, and good corporate reporting and governance.
We have decades of collective experience in these areas. Our advice incorporates knowledge of regulatory and shareholder expectations, evolving industry best practices, common implementation issues, and potential pitfalls. Our work makes our clients stronger and the financial system safer.