Industry Perspective

Emerging Risk and What's on the Horizon

By: Anthony Zheng

Oct. 12, 2023

Looking upwards at tall office buildings.

The ability to identify emerging risk is the result of experience, foresight, diligence, and astute awareness. By proactively recognizing potential threats and embracing opportunities, network managers hold the key to finding success in an ever-changing world of Correspondent Banking.

Charting a Course Through Troubled Waters

The Russian-Ukraine conflict propelled network managers to the forefront in 2022, guiding institutions through uncertain geopolitics, evolving sanctions and shifting market conditions. This year, we were again faced with new challenges such as the rapid collapse of regional U.S. banks, tightening monetary policies and rising interest rates.

Maintaining sufficient liquidity is critical for banks to provide services and for the stability of the financial system, it is hence important to assess and understand a bank's liquidity position.

Finding Peace of Mind Among Risk

Customers and clients need to know that their bank can manage risks and respond to changing economic conditions. A bank that is transparent about its approach to managing risk and takes proactive steps to maintain their liquidity position can provide greater peace of mind.

Aside from understanding a correspondent bank's approach to risk management, network managers need to recognize how banks acquire liquidity. It is important for network managers to have transparent discussions with banks on funding sources and adjustments in response to market changes,

Discovering New Worlds

Banking, at its core, is a risk management business. Recognizing that every transaction, relationship, and decision in the correspondent banking industry carries inherit risk, astute network managers need to proactively identify emerging risks.

Network managers are the gate keepers and stewards of critical relationships, enabling global businesses and trades. A forward-thinking and adaptive mindset cultivates a culture of resilience, enabling the bank to navigate the everchanging tides with confidence, and seize the future with unwavering determination.

Read the full article, Staying Ahead of the Curve: The Importance of Emerging Risk Identification and What’s on the Horizon in Issue 12 of The Network Forum Journal

Disclaimer

This material is intended to provide commentary on securities markets discussed herein.

Not Advice: The information contained in this material is for informational purposes only and is not intended to provide professional, investment or any other type of advice or recommendation, or to create a fiduciary relationship. Neither TD Securities (USA) LLC (“TD Securities USA”) nor any of its affiliates (collectively, “TD”) makes any representation or warranty, express or implied, regarding the accuracy, reliability, completeness, appropriateness or sufficiency for any purpose of any information included in this material. Certain information may have been provided by third-party sources and, while believed to be reliable, has not been independently verified by TD, and its accuracy or completeness cannot be guaranteed. You should not make an investment decision in reliance on this material, which is intended to provide only brief comments on the topics addressed and is based on information that is likely to change without notice. Further, this material does not include risk factors or other material information necessary to make an investment decision and does not take into account your investment objectives or financial condition. You should obtain your own investment, tax, accounting, and legal advice, as appropriate, in order to assist them in deciding whether to enter into any securities transaction.

Not Securities or Derivatives Research: This material has not been produced, reviewed or approved by TD’s securities or derivatives research departments, and is not subject to the independence and disclosure standards applicable to securities and derivatives research reports. The views of the author may differ from others at TD, including TD securities or derivatives research analysts.

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Anthony Zheng
Director of Financial Institutions Network Management, TD Securities

Biography

Anthony Zheng is a seasoned leader with a career spanning nearly two decades in the financial services industry. In his role, he oversees TD Bank's correspondent bank accounts with foreign financial institutions.

Prior to his current position, Anthony served a variety of roles within the firm, including Director of Trading Business Management and Senior Manager of the Office of the COO, where he played a critical role in shaping the success of TD Securities through leadership in key programs. His notable achievements include orchestrating new product due diligence, managing reputational risks and spearheading the Risk Appetite for reporting to the Board of Directors. Anthony also led equity and debt underwriting oversight ensuring optimal outcomes and adherence to stringent regulatory standards. His skill set is further exemplified by his adeptness in developing multi-year business strategies, and his advisory roles to C-Suite executives has earned him status as a trusted partner in driving strategic decision-making.

Anthony holds an Honours Bachelor of Commerce (Honours BCom) degree from McMaster University and is fluent in English and Mandarin. He is also a certified Project Management Professional (PMP).