Compliance Costs Too Much For Banks
Compliance Costs Too Much For Banks
March 14th, 2006: Compliance costs have, "knocked future investments in the payments system off the project slate" claims senior Australian banker.
Speaking at an Australian Bankers' Association/VISA Payments system conference today, the NAB's Group Chief Risk Officer, Michael Ulmer claimed that, ""The sheer size and complexity of the new regulatory regime has absorbed an enormous number of people hours and required specific and complex technological response," reports AAP.
Ulmer, who has held senior partnerships with two global accounting companies in Coopers & Lybrand and KPMG, pointed out that investment by banks and other financial institutions on client-focused payment systems is being undermined. This diminution of the desire by the major trading banks is primarily driven by international compliance regulations such as Basel II ('The New Accor') which, "…require an adequate return if there is to be an environment conducive to continued investment - unfortunately, this is a key principle that is often overlooked".
Ulmer, it is reported, didn't stop at Basel II, laying wider blame for under-investment in payment systems at the doorsteps of: "…new international reporting standards, Sarbanes Oxley and anti-money laundering (legislation)," saying that these, "have impacted on the financial services sector's investment in the payments system."
As this story goes live, IDM is waiting for a full transcript of the Ulmer speech from the NAB.
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