The following is the seventh and final article in a series on bank risk culture. The previous articles can be accessed here or by clicking the HOME tab on the blog.
A total meltdown in any industry requires nothing less than a total rethink of the way forward. However, rather than finding themselves engaged in a total rethink of the how and why they must transform their business, banks have been engaged in responding to more legislation and regulation as well as improving their governance and internal controls.
The problem for banks is that neither governments nor regulators can create a better future with great institutions—only bankers themselves can. Continue reading
Posted in Banking, Business
Tagged Banks, Business, Culture, Customers, Employees, Financial Crisis, Government, Leadership, Management, Mission, Regulators, Suppliers, Sustainable, Values
The way in which banks focus on innovation is crucial for their long term survival. However, are they focusing on the right things?
There are times when you are writing a book and your mind, body and soul get drawn into directions that you neither dreamed nor envisaged when you first started out. It is a wonderful thing when it happens because it means your passion for what you are doing is driving your thought processes and stirring your imagination beyond the realms of cold logic.
It is a very nice feeling.
In the middle of writing Clearing The Bull questions about what it meant for organizations to be innovative and whether or not banks were truly innovative entered my mind. I was grappling with the idea that in general, organizations that were truly innovative were both economically and competitively sustainable. However, given that I was writing about the banking industry and the financial crisis, it had occurred to me that given such a definition, banks were clearly not innovative.
Posted in Banking, Business
Tagged Banks, Clearing The Bull, Financial Crisis, Forbes, Google, Great Depression, Leadership, Mission, Sustainable, Values
This is the second in a three-part series of articles on the financial crisis. Part I can be found at this link.
The Real Reason for the Subprime Crisis and Bank Failures
The subprime crisis was not really about management, risks, controls and regulations—these were all after the fact. The crisis was a direct result of human failings which stemmed from a poor system of values. In order to understand this we have to look at and examine the crisis within the context of the industry’s human ecosystem. The following analysis does precisely that.
Posted in Banking
Tagged Banks, Behavior, Clearing The Bull, Customers, Financial Crisis, Human, Human Assets, Junk Bonds, LDC Debt, Legislation, Mission, people, Plato, Predatory Lending, Regulation, Subprime Crisis, Suppliers, Sustainable, Values