> Global banks adapt to uncertain economics and regulations
Global banks adapt to uncertain economics and regulations
Global banks adapt to uncertain economics and regulations
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The following institutions were represented at the 2011 Bank Directors Summit: Bank of America Bank of China Barclays PLC BNY Mellon CIBC Credit Suisse Deutsche Bank HSBC ICBC JPMorgan Chase Macquarie Group Morgan Stanley Rabobank Société Générale TD Bank UBS Unicredit U.S. Bancorp
While talk of a "once-in-70-years" depression may have passed, major concerns about the short- and medium-term outlook for global economic and financial regulatory reform persist.
To discuss the impact on the banking industry, Ernst & Young and Tapestry Networks recently welcomed 18 board members of global banking institutions to the third annual Bank Directors Summit in New York. Over the course of the summit, these non-executive board members shared experiences and insights on the major challenges facing their organizations.
Since the summit in 2010, they agreed the degree of uncertainty facing the industry has increased. Consider these developments:
1
The European economy has stalled, with debt and budget crises bringing significant political challenges across the Eurozone and beyond
2
The regulatory landscape is altering materially, with new agencies, mandates and leadership
3
Changes in supervisory approaches have further pressured boards to challenge management in ways that may blur the lines between board and management
4
The US economy has faltered, and the political stalemate over how to handle long-term debt and fiscal challenges has cost the country its much-prized S&P triple-A rating
5
Regulatory pressures have increased as more costly requirements have been imposed on systematically important financial institutions (SIFIs)
In the midst of these circumstances, the summit could not have been timelier. We hope our candid discussions with some of banking's leading influential non-executive directors will stimulate your own thinking and actions as the industry continues to evolve.
Bank of America