RC: How would you characterise the relationship between financial institutions (FIs) and regulators since the financial crisis a decade ago?

Kimner: In a word, tolerable. That is not to say that FIs universally believe their relationships with regulators are in an ideal state and are not without bumps in the road, nor does it mean that FIs believe they are appropriately regulated. Quite the contrary, in fact. But, the majority of FIs recognise that an adversarial relationship with regulators does not ultimately work to anyone’s advantage. Historically, many institutions treated regulatory authorities with an arm’s length relationship in the best of cases, and an antagonistic one in the worst. In many ways the financial crisis strained these relationships further, but the years following have brought many institutions and regulatory bodies together to try to determine what is in everyone’s best interest. Of course, there are nearly universal requests by those who are governed to reduce the burden and cost of regulation, but at the same time, there is a recognition that a sound financial system benefits all.

Apr-Jun 2017 Issue