Banks’ senior management needs to assess their current performance against the requirement to treat customers fairly, identify possible areas for improvement and ensure that the principle of fairness is embedded in their work-culture. Risk management The Third issue which has assumed critical significance now is “Risk Management” and its proper understanding. We cannot view banks’ risks at individual level in isolation all the time.
It has also been argued that the emphasis on micro-prudential regulation may have contributed to the buildup of some macro risks. Collectively, the systemic risk is becoming more and more prominent with the increasing complexities and the associated risk factors in the banking activities.