Banks that are in a position to mobilize quickly and effect change ... will be most successful in responding to a shifting regulatory landscape.
New York, NY (PRWEB) September 21, 2011
As banks emerge from the global financial crisis, they are encountering a new era of financial regulatory reforms that have the potential to dramatically alter the industry’s operating model. Yet, persistent regulatory uncertainty, including increased liquidity requirements and capital standards, is hindering banks’ ability to forge ahead.
“How do you effectively plan for and execute a global program that cuts across every line of business, multiple functions, and operations and technology?” asked John Weisel, FSO Global Advisory Leader, Ernst & Young. “This is among the most complex change-management situations that a bank can face.”
To provide guidance on these pressing issues, Ernst & Young collaborated with CFO Research Services to survey top financial executives at 14 global banks. On September 8, leaders participated in a high-level discussion stemming from key findings of the report titled “The Next Era in Banking: senior executives on doing business amid post-crisis regulatory constraints." They also offered industry-specific insight on what banks can do now to achieve both regulatory compliance and optimal pursuit of future growth.
In addition to Weisel, the free, one-hour webcast featured other panelists sharing insight on how banks can balance compliance, risk and growth and how to implement and measure success. These presenters included:
- Andrew Harmer, a leader of Ernst & Young’s Financial Services Risk & Regulatory Practice in Australia and a member of the firm’s global regulatory strategy group.
- Thomas Eagan, managing director in JPMorgan’s Global Treasury group responsible for the global implementation of the firm’s future liquidity management framework.
- JB King, director of marketing for Global Banking & Capital Markets for Ernst & Young.
In the 2011 report, respondents said banks are limited in their ability to make the kinds of strategic decisions needed to successfully adapt to regulatory and operating changes. The survey also found that forward-looking decisions may be further hampered by an emerging culture that is averse to even controlled and reasonable risks.
In addressing the study findings, Ernst & Young identified three steps successful banks are taking to compete in the new environment.
1) Aligning the goals and objectives of business users, operations and technology organizations. Everyone needs to band together.
2) Defining the business and architecture thoughtfully. Banks that implement change on this scale begin with a view of the end.
3) Determining the right sequencing for implementation. This is perhaps the most difficult step. Should the retail business be addressed first or the investment bank? Should the change effort start with risk or with treasury?
“Reactive and proactive responses must coexist,” said Weisel. “Banks that are in a position to mobilize quickly and effect change in areas such as technology, operations, and reporting will be most successful in responding to a shifting regulatory landscape.”
Learn more about the Ernst & Young 2011 CFO report and what it uncovered about banks’ strategies to create value amidst regulatory reforms. View the Ernst & Young September 8 webcast, “Banking’s Catch-22: achieving growth and compliance."
About the Ernst & Young Global Banking & Capital Markets Center
In today's globally competitive and highly regulated environment, managing risk effectively while satisfying an array of divergent stakeholders is a key goal of banks and securities firms. Ernst & Young brings together a worldwide team of professionals to help you achieve your potential – a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately, it enables us to help you meet your goals and compete more effectively. It's how Ernst & Young makes a difference.
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