More than half of top executives at some of the world’s largest companies think their banks are still taking too many risks five years on from the financial crisis, according to a survey by Ernst & Young.
by Harry Wilson, The Telegraph:
Just 43pc of executives said they were completely confident their banks were taking acceptable risks, while less than a third said their banks shared adequate information on its risk, capital and liquidity.
Among the businesses taking part in the survey were the drinks maker, Diageo, Google, the internet search provider, and the energy company, Total, with executives complaining about a lack of transparency from their banks.
“The lingering after-effects of the 2008 financial crisis and the ongoing challenges in the eurozone have forced corporations to focus on the stability of their core banking teams. Counterparty risk and exposure from banks have become heightened concerns for large corporates and, as a result, we predict that banks will have to be more transparent about their risk profiles and portfolio concentration,” said Steven Lewis, a global banking analyst at Ernst & Young.
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