The greatest risk now facing the banking industry is not financial but political, according to the latest ‘Banking Banana Skins’ survey conducted by the CSFI in association with PricewaterhouseCoopers.
The annual poll of banking risk puts 'political interference' at the top of a list of the 30 most serious risks to banks during this period of financial crisis.This view was shared by all types of respondents in all the major banking regions, though for different reasons. Bankers saw politics distorting their lending decisions. Non-bankers said that political rescues had damaged banks by encouraging reckless attitudes. Regulators worried that governments would withdraw their support from banks before they had time to rebuild their financial strength, precipitating another collapse.
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