UK, other jurisdictions, trying to improve bank culture by addressing tone at the top

21 June 2018 7:17am
Regulators in the UK, Canada, Hong Kong, and the Netherlands said they are trying to improve banks’ organizational culture in the wake of multiple scandals by monitoring tone and communication from the top.

They added at a banking conference* this week that their agencies are trying a variety of other tools as well while trying to figure out how to measure their impact.

“It’s very difficult to know whether you’re having any effect,” said Kevin Stiroh, an executive vice president of the US Federal Reserve Bank of New York, who moderated the conference panel. “Just like there’s no one silver bullet to measure that firm’s risk culture, there’s probably no one supervisory tool that would be effective in all cases.”