They are affected – for better or worse – by the policy environment. One important element here is monetary policy, but other domains of public policy can also have an impact. Some policies – whatever the intention – can restrict supply and affect cost directly or indirectly. These would include land use and zoning, development charges, and building codes. Other policies can affect demand.
As I reflect on our conference theme, “Repositioning the Financial Services Sector”, I conclude that while our why has not changed, our what and our how are facing disruptive challenges, including: Internationalisation of services Technological advances and disruptions Consumer pressure for cheaper financial products, convenience, and caring service Tough competition The demand for simplicity in a world of complexity Stricter international rules and standards How can and must we respond to these circumstances?