This week, some of the largest institutions have begun to report that their profitability held up again in the third quarter, partly because their robust provisions for loan losses earlier this year limited the need for additional provisions this quarter. Going forward, we will want to be sure that banks remain a source of strength and support for the economy.
As I have said in the past, corporate governance is especially important for banks because they have a special task – that of looking after other people’s money. This places a heavy responsibility on their boards of directors and senior management.