The case
Good results for the year, but medium-term outlook gloomy now interest rates are heading in the opposite direction.
The commentary
For more than a quarter of banks (28%), the best way to make supervision more effective would be transparency in enforcement proceedings. That would extend to explicitly “naming and shaming” the people concerned and an increased duty of accountability for managers (a “senior management regime”). The least effective course of action from the banks’ point of view would be to extend FINMA’s audit activity under supervisory law. Only 13% think this makes sense. Banks would like to continue to appoint their auditors themselves and the overwhelming majority oppose the supervisory authorities issuing direct mandates. As well as the problem of interference with the economic freedom of banks, the emphasis here is arguably on efficiency considerations.
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