• Service: Advisory, Risk Consulting, Financial Risk Management, Topics, Managing Risk & Complexity, Risk Systems for Financial Services, Financial Services Regulation
  • Industry: Financial Services, Banking
  • Type: Business and industry issue
  • Date: 22/12/2011

Evolving Financial Services Regulation

Evolving Financial Services Regulation
This series discusses the regulatory challenges facing the financial services industry and provides insight on implications and issues to consider.

Evolving Banking Regulation: A long journey ahead 

The journey to re-shape the banking sector continues, in a time fraught with uncertainty. The ever-expanding set of regulatory and related reform initiatives at global, regional and national levels, pose substantial challenges for banks. Particularly when combined with the European sovereign debt crisis which is in danger of creating instability and dragging down economic growth.
Evolving Banking Regulation – A long journey ahead cover
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Each global regulatory initiative is designed to enhance financial stability, protect investors and consumers, and make it easier to deal with failing banks.


However, the law of unintended consequences will kick in and they could also have significant negative impacts on banks and their business models and in turn on banks’ customers and the real economy.


In discussions with banks they consistently highlighted four major areas of concern:


  • Time and resources – the amount of senior management time spent on dealing with the regulatory agenda.
  • Impact on business models – the second wave is forcing consideration of changes to business models.
  • The speed of change – banks are making rapid adjustments, due to market and regulatory pressures.
  • Irregular implementation – local supervisory judgements may generate uneven implementation.


KPMG’s Banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.