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IMF calls for better regulation of banking system

40 Secs Read 

THE International Monetary Fund has said that the global banking system could lose about $350 billion to cyber-attacks.

 IMF Managing Director, Christine Lagarde disclosed this while delivering in a paper titled: “The Financial Sector: Redefining a Broader Sense of Purpose, delivered at the 32nd World Traders’ Tacitus Lecture, London  and called for better regulation of the banking system as a requirement for building a safer, more sustainable and ethically sound financial sector.

 Largade noted that a better financial sector is needed to meet up the needs in the 21st century stressing that this could be achieved by restructuring finance.

 According to her, the task of making the finance sector safer and more trustworthy requires combination of good innovation, better regulation, and a broader sense of responsibility.

 She opined that the potential dangers of “too-big-to-fail” must be addressed as banks have become even bigger and more complex.

 She also said that IMF has recently estimated that cyber-attacks could potentially lead to net income losses in the global banking system of up to $350 billion.

Largade noted that the financial world comes with many regulatory blind spots that should be addressed.

 “making finance safer and more trustworthy is not just about good innovation and better regulation. It is also about a broader sense of individual and collective responsibility” she said.

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