The Deputy Governor reviews the evolution of international banking over the 1970s and the changes which are now taking place; and discusses the challenges these will pose, both for the banks and for the supervisory authorities. While welcoming the progress made in liberalising the financial services industry, he cautions that the strategic choices to be made by banks, the implementation of decisions to diversify, and the assessment and control of the new risks they may undertake, present problems and potential conflicts; supervisors too need to respond to the changes taking place and to modify their approach to deal with the new situation. He concludes that there can for banks be no substitute for a well-thought-out and carefully implemented strategy which takes full cognisance of the risks involved.
Managing change in international banking - a central bankers view - Speech by the Deputy Governor