Banks' sleight of hand could lead to regulatory slippage

By focusing attention on the shadow banking system, bank chiefs might be deploying a diversionary tactic to block regulatory reforms.

Emboldened by strong revenues and profits, and maybe confident that time has dimmed outraged memories, banks are becoming more confrontational. The risk is that their influence on policymaking leads to regulatory slippage before the new rules are fully in place.

Late last year, Lloyds Banking Group said in its evidence to the UK’s Independent Commission on Banking that new regulation “may make matters worse rather than better”. Barclays even asserted that banks should be “free to pursue” whatever business model they wanted.

In January, Jamie Dimon, chief executive of J.P. Morgan Chase, reflected the mood among top bankers at the Davos World Economic Forum when...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222