The third in the series of Evolving Banking Regulation reports from KPMG, analyses the regulatory landscape confronting European banks. The report identifies a number of key challenges:
- Regulatory complexity and uncertainty – Multiple new regulations and reporting requirements face banks, complicated by compliance with many different regulators. Even the regulators are worried about the volume and complexity of the current regulatory landscape. There are conflicting rules and requirements across borders and jurisdictions.
- Diminished returns – Revenues are under severe pressure, while bank costs are rising as a result of regulatory implementation.
- Big data, little use – With reporting requirements to comply with new regulations growing so rapidly, many banks are drowning in data and not necessarily using it very effectively.
- Culture – Banks recognise that culture and behaviours need to change but this cannot be achieved simply by writing new regulations. It requires significant re-plumbing. Banks will need to take difficult decisions and then implement them effectively.
Read the full summary.