Financial Services Ireland


2020 Global Bank Regulatory Outlook

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Four major themes dominating the regulatory landscape in 2020

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:

  • Operational resilience – The resilience agenda brings the added complication that a growing source of risk is located beyond the regulatory perimeter.
  • Environmental, social and governance (ESG) matters and other societal issues – Geopolitical and climate-change risks both feature in the list of 10 major risks to manage over the next decade. Explore our latest EY/IIF global bank risk management survey.
  • Data and emerging technology- There is an opportunity for firms to define what “good looks like” to inform and influence regulatory expectations.
  • Completion of remaining post-crisis measures, such as Basel III and IBOR transition – – Firms should ensure that their risk and governance structures keep evolving, particularly in two key areas: accountability and financial crime.

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.

Cormac Murphy

International Banking & Capital Markets, Sector Leader
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