EY’s 2020 global bank regulatory outlook is set against a period of rapid technological innovation and change in the competitive landscape. The current business and macro-economic environment, combined with the potential for new and more agile entrants to fragment traditional customer bases, presents challenges to banks that threatens their revenue generation. Supervisors are cognisant of pressures in the current market environment, with the need to maintain the improved capital base and to enhance the profitability of systemically important institutions.
The report contains valuable insights for banks as they prepare for the rise of the non-financial risk agenda and reveals four major themes that will dominate the regulatory landscape in 2020:
These topics are relevant to other sectors beyond financial services. As such, it will be interesting to see the extent to which the policy responses in the banking sector, which could develop more quickly than elsewhere due to more intense regulatory scrutiny, resonate with political leaders in terms of developing broader economic and social policy, and how those policy priorities could shift as economic conditions change.
Download the report below and, if you have a question about any of the issues raised, don’t hesitate to get in touch.