Banking Banana Skins 2012 

Feb 2012

The system in peril

PwC has joined forces with the Centre for the Study of Financial Innovation (CSFI) to explore what risks bankers worldwide are facing in the current climate and how they prioritise them.

Based on over 700 responses from 58 countries, the survey, aimed at senior executives in the banking industry, identifies high level issues where the banking industry may be vulnerable.

It seems that the economic uncertainty continues to resonate most, with macro-economic risk rising to the top of the list of boardroom concerns.  The fragile confidence in the sector is further underlined by presence of credit risk, liquidity and capital availability in the top four.

Top 10 risks for 2012 (2010 results):

• Macro-economic risk (4);
• Credit risk (2);
• Liquidity (5);
• Capital availability (6);
• Political interference (1);
• Regulation (3);
• Profitability (-);
• Derivatives (7);
• Corporate governance (12);
• Quality of risk management (8).