BY PETER EGWUATU

The Ernst and Young (EY) has stated that all over the world banks would be faced with the challenge of complying with new regulations.
The survey report jointly carried out by EY and The Banker stated that “Complying with new regulations and operating within regulatory constraints has been the first priority for banks and will remain so for some time to come. However banks must also consider how to meet the expectations of customers, shareholders and markets (and society) within these constraints.”

The surveys among banking executives carried out at a series of round tables organized by The Banker and EY during the final quarter of 2013, revealed that 43 per cent of respondents in Europe, the Middle East, India and Africa and 75 per cent of US  respondents said they expected a reduction in business lines or markets by 2016 owing to capital or liquidity constraints.  But then, 23 percent of Europeans and 17 percent of Americans predicted an increase in appetite for new products and markets.

“It is easy for senior managers to be overwhelmed by the rising tide of regulation, but clearly vital that they do not lose sight of those opportunities for growth. As post-crisis regulatory initiatives reach final rule-making, banks have a chance to try to move beyond reactive decision-making, and begin planning strategically.
“What we are seeing is that in the planning round for 2014, there is a much bigger focus on how banks frame their plans and budgets so that, as well as addressing regulation, they also position themselves to be the bank of the future.