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The financial crisis that erupted over a decade ago brought about a seismic change in regulation. Some of the changes were easy to define, even if controversial and difficult to implement. In the bail-in era, investors in banks had to learn that when things gChanging corporate cultures - John Cassar White
The financial crisis that erupted over a decade ago brought about a seismic change in regulation. Some of the changes were easy to define, even if controversial and difficult to implement. In the bail-in era, investors in banks had to learn that when things go wrong, their capital may have to be used to save a bank from going out of business. In January 2019 Andrea Enria took over as chair of the Supervisory Board of the European Central Bank, replacing the no-nonsense Daniele Nouy. In an interview published on the ECB website, Enria made a very valid point about what remains to be done to strengthen the Single Supervisory Mechanism. “Banks now have more and better capital, more liquidity, and have reverted to more stable sources of funding. However, all this is of little value if a bank suffers from poor governance, short-sighted leadership and a problematic culture,” he argued. The change in culture, not just in banks but in all business communities, is the acid test of how successful the regulatory reforms will be in making another crisis less likely. Doing what is right is different from merely observing strict laws and regulations. It is difficult to define what... Read more
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