They are linked to one another in a network which seeks to create an Islamic state in Southeast Asia through violence and terror. The recent bomb attack in Bali was a tragic reminder that Southeast Asia is at the frontline of the worldwide war against terrorism. A third, more cyclical, factor underlying Southeast Asia’s under-performance, has been weakening external demand.
For community banks, a decision to embrace a new technology or innovation is almost always synonymous with third-party engagement. Regulators and supervisors can contribute to an environment where banks are empowered to achieve these strategic objectives, simplifying and clarifying the process of third-party selection, due diligence, and monitoring.