Regulation is ‘strangling banks’

INCREASING regulation has become the greatest risk facing the banking sector, according to a new survey by PricewaterhouseCoopers.

The latest Banana Skins survey, which covered 440 bankers in 54 countries, found the EU and North America were the worst offenders for excessive regulation and that banks in the regions could fall victim to a false sense of security and higher then necessary costs.

PwC’s banking services head Alan Merriman said: “The majority of Bankers surveyed are worried that too much prescriptive regulation is beginning to stifle innovation and judgment across the industry.