To complex to manage?

Perspectives

Global bank governance in a structurally reformed world

Too complex to manage?

Global bank structures are changing, and regulators want continuous assurance that banks are well run. This report from our Center for Regulatory Strategy sets out the new reality for governing global banking groups in the context of structural reform and makes recommendations for where global banks should focus their energies in trying to tackle the challenges they face.

Overview

Managing global banks is inherently difficult, made more so by new post-crisis regulatory constraints which have increased the cost and complexity of governance structures. Global banks need to be able to play within the new rules of the game, which requires a focus on the structural, procedural, and human capital solutions necessary to coordinate globally along multiple business lines and legal entities.

The industry has come a long way in recent years, but there is more that global banking groups can do to deal with the pressures of steering highly complex organizations through difficult economic, political, and regulatory times.

This report makes recommendations for where global banks should focus their energies on trying to tackle the challenges they face, including:

  • Senior management understanding of organisational structures,
  • Responsibility for internal governance,
  • Dual-hatting arrangements,
  • Subsidiary board effectiveness,
  • Policy governance, and more. 
Global bank governance in a structurally reformed world

About the Global Center for Regulatory Strategy

The Deloitte Center for Regulatory Strategy is a powerful resource for information and insight, designed to assist financial institutions managing the complexity and convergence of rapidly increasing new regulation.

With regional hubs in the Americas, Asia Pacific, and EMEA, the Center combines the strength of Deloitte’s regional and international network of experienced risk, regulatory, and industry professionals—including a deep roster of former regulators, industry specialists, and business advisers—with a rich understanding of the impact of regulations on business models and strategy.

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