Very interesting and thoughtful article distributed on Reuters regarding the state of bank regulatory culture. Banks have designed their compliance programs as extensions of the regulators that oversee their operations. In other words, they’ve in-sourced enforcement functions – creating a culture of enforcement that can actually work against effective compliance programs.
A new approach is needed that encourages strong cultures that reinforce open information sharing and self-reporting. As the author specifically notes, Starling is building the tools that can support such a change.
Here is a link to the full article.