Banks confront reality of reform as new regulations are implemented
Brussels, March 26 - KPMG International launched the latest edition of its “Evolving Banking Regulation” reports with From Design to Implementation, at the Finance Europe Forum in Brussels on March 26. The “Evolving Banking Regulation” series is now in its fifth year of tracking post-financial crisis regulatory reform.
From Design to Implementation provides an in-depth review of key banking regulatory developments, with global insights on approaches in implementing regulations and the issues for banks as they strive to adjust to stricter and in many cases new regulatory approaches.
“Banking regulatory reform has clearly moved from the design to the implementation phase,” says Jeremy Anderson, Global Chairman, Financial Services, KPMG International. “Our purpose with Evolving Banking Regulation is to help banking clients focus more clearly on the key implications of regulations being put in place and the steps they need to take to secure a viable and sustainable future.”
Speaking at the Finance Europe Forum, Francisco Uria, Head of Financial Serivces, KPMG in Spain introduced the Evolving Banking Regulation report and commented on the regulatory progress achieved in the past year in the European Banking Sector: “The beginnings of the banking union have been very promising. The ECB has established its institutional architecture and supervisory organization and even set up the joint supervisory
teams, all in record time. The ECB has also entered into supervisory dialogue with banks. What will be crucial for global banks going forward is that there is maximum cooperation between the ECB and international bodies, such as the Bank for International Settlements and its Banking Supervision Committee and the Financial Stability Board.”
The Evolving Banking Regulation report contains a unique ‘Regulatory Pressure Index’ that visually maps the impact of key regulatory issues on banks in different regions. Based on five years of data, the Index shows that while regulatory pressures remain highest in North America and Europe, there continues to be a steady increase in regulatory pressure on banks in the Asia-Pacific region.
Jeremy Anderson adds: “Many banks to date have focused almost entirely on meeting new and tougher capital, leverage, and liquidity requirements, but while this may have enabled banks to meet immediate regulatory requirements, achieving a viable and sustainable future requires banks to also have a strategic focus on their customers, business and operating models, IT systems and data management, culture and governance. These are topics we intend to touch on as well in the Evolving Banking Regulation series.”