PWC report finds that too much regulation is the biggest concern for firms
For the second year in a row, too much regulation is judged to be the greatest risk facing the financial sector, according to a survey sponsored by PricewaterhouseCoopers. According to the survey, “cost, diversion of management time and the sheer volume of regulatory initiatives” all contributed to industry concern, though unease is growing over the politicisation of regulation and interference of governments.
“The cost of regulation was much the most frequently mentioned risk, particularly since few bankers saw a compensating benefit,” said the report. Distractions due to the influx of new regulations, anti-competitive aspects of regulation and the inappropriateness of certain regulation were also frequently mentioned.
Basel II in particular was highlighted as being too complicated, adding too much stress to banks that are required to adopt it. One respondent said that the revised Accord was “novel
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