Banking, customer facing business has become more sophisticated, but underlying rules/regulations still behind the curve. Mark to market May not work for some part of banking but imposed. Long term capital is required for this business stability/ALM but accounting/Basel rules make it tough. It has not moved to global regulatory model, but still stuck in national boundaries. Govt uses them for deficit financing, targeted lending and lobbying, ie umpire is also a playing captain here. Other players like insurance, PE, asset managers, nbfc, parts of fin tech, para banking, should be under a national super regulator.
"outside my domain and above my pay grade" - learning this for future use
Good article. But no views.
Banking, customer facing business has become more sophisticated, but underlying rules/regulations still behind the curve. Mark to market May not work for some part of banking but imposed. Long term capital is required for this business stability/ALM but accounting/Basel rules make it tough. It has not moved to global regulatory model, but still stuck in national boundaries. Govt uses them for deficit financing, targeted lending and lobbying, ie umpire is also a playing captain here. Other players like insurance, PE, asset managers, nbfc, parts of fin tech, para banking, should be under a national super regulator.