Such efforts rely on the financial sector: finance provides the necessary bridge between opportunities and expectations today, and higher productivity, output and incomes tomorrow. 4 How do financial intermediaries manage these inter-temporal flows in such an uncertain environment? The challenge of doing so is compounded by changes to the financial sector itself.
Though the quality of bank accounting and control systems is strong, bankers should heed lessons to be learned from Enron and other breakdowns in accounting and audit processes. Strengthen corporate governance where needed to prevent such abusive practices from occurring at your institutions.