CSFI/PwC report warns of Asian banking risks

Over-reaction of regulators ranked as the biggest fear of Asian bankers.

The 13th Banking Banana Skin Survey 2010 produced by the Centre of the Study of Financial Innovation and PricewaterhouseCoopers revealed Asia's senior bankers find excessive regulations as the most serious risk to banks.

Participating bankers believe over-regulation has the potential to bring about unintended consequences such as unsustainable business models or more costly systems. It is also feared pre-emptive measures from regulators could stifle recovery instead of protecting banks from crises.

Dominic Nixon, Asia Financial Services Leader, PricewaterhouseCoopers LLP, said, "What the bankers are telling us is that governance frameworks need to be less bureaucratic and more risk-focused."

The Banking Banana Skin Survey 2010 may be accessed here.

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