But there arguably has not yet been a full recognition of the need for banks to return to what Ed Clark calls “old fashioned banking – activities that help grow their country and communities.”4 To do this, some banks may need to reconsider their values. Core values The fifth “C” – core values – is the responsibility of the financial sector and its leaders.
Will staff be encouraged – and firms warned to expect – an intrusive approach or not? It is important to articulate the essential elements of the supervisory approach so that front line staff – and the banks they supervise – have a clear understanding of senior management expectations and risk appetite.