There is no doubt that the rules of banking have changed dramatically over the past two decades. Many of these rules are important and needed to help protect consumers, assure safe and sound banks, keep the financial system solvent and contribute to a strong economy.

However, as banking and finance activities become more complex, so have the rules of the road. It is not unusual today to find financial institutions that are spending two to three times more on compliance than they were 10 or 20 years ago.

Many bankers believe that the regulatory compliance task has become exceedingly challenging and the cost of compliance is growing at a rate that is unsustainable.

The Deloitte Centre for Banking Solutions has examined the broad range of regulations that currently face bankers and identified six areas where closer attention is warranted. The areas of focus are:

• enterprise-wide risk management
• anti-money laundering
• regulatory capital reform
• consumer protection, predatory lending and information security
• recent supervisory policies and guidance
• financial stability.

A solid, focused effort in these key areas could pay off in terms of improved compliance, more reliable risk management, better service to customers and even a competitive advantage over those banking organisations that are not placing proper emphasis on compliance.

Read the full point of view attached below.

Attachments
Regulatory outlook: Key areas in the horizon for banks (PDF, 1784 KB)
Deloitte report