Second
Pillar strives to provide Basel II access to banks of all sizes and
means. Pricing depends upon balance sheet complexity – the range
and number of business lines, degree of securitization activity, extent
of financial collateralization of loans – and client readiness for the
structural risk management requirements of the regulation. In all
cases, we provide a clear statement of work and fixed fee structure so
you will know total expenses before any work is started.
The table below provides indicative pricing for the three sequential
deliverables that comprise Second Pillar compliance services. We
typically price each deliverable separately so clients can manage the
pace and extent of the engagement. For example, if the detailed
capital savings estimate proves insufficient to justify further
compliance activity, the client can suspend or cancel any work on the
remaining two deliverables.
| |
Price Range |
|
Deliverable |
low |
high |
comments |
Detailed Capital Savings Estimate |
$5K |
$25K |
depends
upon size and complexity of balance sheet; quality of internal data;
staff ability to work with and deliver required data |
Gap Analysis |
$5K |
$25K |
for gap analysis only, not remediation; depends upon size and complexity of institution; clarity of existing documentation |
ICAAP -- initial development
ICAAP – periodic update
|
$25K
$10K |
$500K
$200K |
depends
upon size and complexity of institution; current state of policies and
procedures; existing modeling capabilities; institutional capital
management experience |
Second
Pillar Consulting has significant experience helping institutions develop
robust capital adequacy processes. We consider capital management a key
bank competency and can help institutions craft and refine an SR 09-4 approach
that includes:
 | Phase I: Triage
- Gap analysis and preliminary remediation
plan that quickly sizes the challenge
- Flat $10,000 fee, results in about a
week
|
Banks can also choose to
retain Second Pillar Consulting for help with remediation. Our
"SR 09-4 Rescue Kit" is an effective, low cost approach to closing
compliance gaps.
| Phase II: Rescue Kit
- Analytics, such as stress testing
and capital contingency modeling
- Governance, including Board training
and policy/ procedure overview
- Implementation, ensuring that reports
are generating appropriate awareness of and investment in the capital adequacy
challenge
- Regulatory relations, fostering a
productive dialog with the regulators charged with ensuring adequate capital
adequacy
- Flat fee quoted prior to
commencement of Phase II based upon Triage results
|
We emphasize that these are only estimates. Second Pillar
Consulting provides a detailed price and scope of work in the formal
contract that precedes any engagement. |
