Banks must ensure safety and soundness of their systems
Tony Chew, director and specialist adviser to MAS discusses the urgent need for banks to boost their defenses in response to the various technology risks of today. October 29, 2012 | Tony ChewThe banking system can be likened to a heart in the body. The heart pumps oxygen rich blood to all parts of the body sustaining life and keeps the body health. Now the banking system in terms of its function is very similar to a heart. It pumps money to all parts of the economy, facilitates and promotes industrial development, commerce, trade and productive investments. We need a robust banking system, but there has been a recent litany of banking incidents, scandals, crisis, and failures that have really shaken the world of banking. Banks have been caught rigging liable, facilitating money laundering for its customers. They have also been caught selling complex derivative products to retail and SME customers who do not need those products and who could not possibly understand those products. There has been serious rope trading, which indicates the banks still have problems managing their trading risks. We have massive system failures, which also points to banks being unable to manage the technology of risk and to ensure the safety and soundness of their systems. Also, banks have copped huge fines running into billions of dollars currently for money laundering as well as other scandals, with a dozen or so banks in the US, Europe, UK and Japan are still under investigation by regulators and law enforcement agencies. There has been very serious disruption to the operations and stability of banking systems as well as damage to their reputation. Now we need to sort this out, because it goes to the very heart of the functioning of a robust and resilient banking system. We need to repair our banking system. We certainly have to get rid of the culture of greed, recklessness and deceit in banking systems. We have to restore a culture of integrity, trust, and honesty in our banking system. But this is not an easy task. Standard Chartered Bank, for example, has got admirable slogans about its distinctive culture, its values, which act as its mor... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Data & Analytics, Operational Risk & Security, Regulation, Risk & Performance, Risk and Regulation, Technology & OperationsData & Analytics,OperationalRiskSecurity,riskregulation,Risk & Performance,Risk and Regulation,technology, Data & Analytics,Operational Risk & Security,Regulation,Risk & Performance,Risk and Regulation,Technology & Operations, Keywords:The Asian Banker, DataWorld 2012, Tony Chew, MAS, Rope Trading, Standard Chartered Bank, HSBC, Technology Risk, Data Mingling, TRM, Big Data The Asian Banker, DataWorld 2012, Tony Chew, MAS, Rope Trading, Standard Chartered Bank, HSBC, Technology Risk, Data Mingling, TRM, Big Data
|