Banking and Securities Outlook 2010
2010 is certain to be another tough year for the global banking and securities industry according to a report released by global professional services firm Deloitte.
Through a series of in-depth interviews, Deloitte’s Banking & Securities sector leaders and subject-matter specialists have detailed five major trends that will dominate the industry in 2010. These are:
- The impact of new regulations on financial firms' business models
- The challenge of core IT systems and data aggregation
- Continued improvements in corporate governance and risk oversight, especially at board level
- Playing out banks’ exposure to distressed assets
- Seeking growth in weak markets.
These trends are also present to differing degrees in the Australian banking market according to Deloitte banking partner Paul Wiebusch. With uncertainty about the outcome of proposed changes to the regulatory environment, a recurring theme in the recent trading updates from Australia’s banks.
Globally new regulations are expected to tighten capital, liquidity, and risk management rules with legislation on new systemic risk procedures and streamline regulatory agencies and procedures.
Australia has already started down the regulatory path with proposed changes to consumer credit law, the Council of Australian Governments’ (COAG) harmonisation initiatives, and the proposed reforms of the financial planning industry introduced into parliament by the Ripoll report and the recommendations of the Johnson Report, aimed at developing Australia as a leading Asia Pacific financial services centre. Meanwhile the reforms proposed in the Henry Tax Review and the Cooper review of the superannuation industry, are much anticipated.
Financial institutions will need to allocate time and resources to both to understand the potential impact of regulatory changes and meet new regulatory obligations.
For further information, please contact Louise Denver.
Download the full report below.