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Ernst & Young CFO Report: Banks Limited by Regulatory Changes

Ernst & Young CFO Report: Banks Limited by Regulatory Changes

Financial regulations that have been enacted - as well as those that are being proposed - continue to affect the way major banks operate.

According to the fifth annual Ernst & Young CFO report and subsequent webcast, a number of respondents believe that banks have a limited ability to make the necessary strategical decisions brought on by this shifting regulatory environment.

In reaction to this major finding within its report, Ernst & Young reportedly pinpointed specific steps that successful banks have taken in order to stay afloat, according to a release.

These steps included ensuring that the objectives of all of the bank's organizations - including technology, operations and business users - were lined up and having a vision of the end result early in the process. Likewise, successful banks appeared to have a specific implementation plan in place regarding which sector of the business should be adjusted first.

"Reactive and proactive responses must coexist," John Weisel, FSO Global Advisory Leader at Ernst & Young, said in the release. "Banks that are in a position to mobilize quickly and effect change in areas such as technology, operations, and reporting will be most successful in responding to a shifting regulatory landscape."

One of the leading factors in regulators introducing more measures is the pressure of higher prices facing consumers, according to CFO World.

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