Active engaged governance or just going through the motions?

Should banking regulators seek to supervise culture in the same rigorous way they assess liquidity or balance sheet risks. Not everyone is persuaded. After all, culture isn’t quite as concrete and doesn’t lend itself to the world of spreadsheets and models. But it’s harder to complain about a supervisory review of governance which can operate […]

Stopping the rot – 10 tips for addressing conflicts of interest

The recent IMF Working paper “Good Supervision: Lessons from the Field” considered the impact of supervision on recent bank failures, and identified the need for supervisors to be assertive, timely and prompt in decision-making to deliver meaningful intervention. No surprise then that in the FCA’s recent Dear CEO letter for Wholesale Banks, the FCA confirmed […]

Supervising Compliance functions: uncomfortable questions Boards should be asking (and CCOs should know the answer to)

In recent scandals, Boards have complained that they were not fully informed on a critical matter which has led to significant regulatory or reputational damage for the institution. Of course, such damage calls into question whether the Board are carrying out their supervisory responsibilities adequately. In my experience Board members take different approaches to assessing […]