Banking Banana Skins 2015: Recovery under threat
Co-author (with David Lascelles)
Published by the Centre for the Study of Financial Innovation, in association with PwC
Number of Pages: 43 |ISBN 978-0-9926329-8-4
The global banking industry is in the advanced stages of its recovery from the financial crisis. Threats that once put the entire financial system in jeopardy have now receded, from urgent shortages in liquidity and capital to huge losses from exotic products in the aftermath of the crash.
Yet, as the CSFI’s 2015 Banking Banana Skins survey reveals, a return to health is far from assured. There are lingering concerns about a hostile public environment, inadequate risk management and poor conduct practices. These are joined by a rapidly emerging set of risks around technology, and particularly cybercrime, with banking business models coming into question in the face of competition from non-traditional entrants.
BBS 2015 surveyed 672 responses from 52 countries. The 10 highest ranked risks were:
1 - Macro-economic environment (up 2 positions compared to 2014)
2- Criminality (up 9)
3- Regulation (down 2)
4- Technology risk (no change)
5- Political interference (down 3)
6- Quality of risk management (up 5)
7- Credit risk (no change)
8- Conduct Practices (up 8)
9- Pricing of risk (down 3)
10- Business model (down 3)
In the media:
■ Financial Times | Watch out for emerging market banana skins
■ Bloomberg | Banks silent about Cybercrime
■ Sky News | Cyberattack is 'Main Threat' to UK banks
■ The Times | Could ISIS cripple a big bank and cause chaos? Don't bet against it.
■ The Independent | UK and US Bankers fear cyber attack more than economic crisis
■ International Business Times | North American Banks See Cybercrime As Biggest Risk