Recent discussions on the implementation of new rules and regulations in the banking sector will certainly pose challenges and call for new risk mitigation techniques.
I will only mention as examples the discussion in relation to the introduction of the IAS accounting standards for the banking sector, including full fair value accounting for the banking book , as well as the information disclosure of the quarterly results, which will most likely increase the short term volatility of the banking results; the future introduction of the new capital adequacy rules which risks having a negative pro-cyclical impact of the loan-loss provisions on the financial sector.