HSBC warns of ‘risk aversion’

HSBC, Europe’s largest bank, yesterday warned that a growing body of international regulations was putting its staff under unprecedented pressure and discouraging them from taking risks.

In a statement, HSBC’s chairman Douglas Flint called on international regulators to clarify what they expected of bank staff after a recent spate of record fines for misconduct had left them fearful of retribution.

“There is... an observable and growing danger of disproportionate risk aversion creeping into decision-making in our businesses as individuals, facing uncertainty as to what may be criticised with hindsight and perceiving a zero tolerance of error, seek to protect themselves and the firm from future censure,” Mr Flint said.