Regulation has also driven greater transparency, disclosure and consistency in reporting, and product design and literature. Notwithstanding the progress, legacy issues remain. These include the remaining high level of non-performing loans that I referred to earlier, remaining vulnerabilities in some banks’ business models, and capability issues in critical areas, including in IT risk management.
Furthermore, resolution plans are not yet fully implementable, meaning that there is further work to be done to remove implicit taxpayer support for the larger banks. As we have recently reported, banks also have work to do to improve their cultures and the levels of diversity at senior levelsxx.