Reforms insufficient to stave off another global crisis, say bankers
Wednesday 13th January 2010
The next financial crisis will strike within the first half of this decade, according to the majority of the world’s senior banking and compliance officers.
In a survey from Complinet, the world’s leading provider of compliance solutions, the majority of regulatory experts questioned predicted the next significant economic downturn before 2015.
“The continuing lack of company transparency and accountability to the markets and the public makes the possibility of another crisis almost assured,” said one of the businesses questioned.
The Complinet survey also showed that only 40 per cent thought their firm had changed its approach to compensating employees based on a better understanding of risks associated with the business. And 91 per cent recognised that the current bonus culture is resented by those outside the financial services industry.
But the survey also showed that 62 per cent of senior management believe they’re putting the right controls in place.
“Regulatory reform and implementation of effective compliance solutions are clearly vital to avoid another crash,” says Paul Johns, vice president of global markets at Complinet.
“The key message from this survey is financial institutions must ensure they have enough compliance resource to navigate through the regulatory maze and reduce the risk of falling foul of the rules.”
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