In 2013 I never expected that I would be writing this but there seem to be those employed in banking from the top to the bottom that lack some of the basic understanding of how things work. And it’s getting worse. Why is this?
The crisis has taken its toll. Redundancy and retirement cuts costs but depletes know-how. Replacements do what they do. But do they know why they do it?
Contribution needs to be more than an aspiration. How does general experience furnish the NED with the right skills to deal with banking?
When regulators go on fishing expeditions (to banks) they must learn how to tie the fly!
In the UK the Coop sends us a message.
(Hopefully not an extensive report on the shortfalls and the promise that it won’t happen again).
Businesses that involve complexity (banking does - in spades) need those involved to have the right skills.
It’s fashionable to blame the ills on “culture” but the enforcement regime of compliance and regulation that surrounds this will fail if those involved don’t have the prerequisite knowledge to understand straight forward issues let alone form independent judgements.
As a fall back regulators are increasing fines.