Standard Chartered’s CEO, Bill Winters, has recently warned about potential risks that haven’t yet “come home to roost” in the banking sector. In a recent interview, Winters expressed concern about issues such as rising inflation, increasing geopolitical tensions, and the potential for a market correction. He also emphasized the importance of risk management in navigating these challenges.
Winters’ comments come at a time when the global banking industry is facing a number of uncertainties and pressures, including ongoing economic fallout from the COVID-19 pandemic, increasing regulatory scrutiny, and the rise of fintech disruptors. It remains to be seen how these factors will continue to shape the banking landscape in the months and years to come.
Stay tuned for further developments and insights into the future of the banking sector.
“There are other imbalances that built up during this long period of very low-interest rates that haven’t come home to roost in some form of a crisis. It’s incumbent on us to understand where those are to try and anticipate the changes that can come,” he said.
Winters commended the “highly impactful” work of both U.S. and Swiss central bankers in stemming wider contagion.
However, he noted that the episode also highlighted some regulatory shortcomings, which would need to be addressed with caution and consideration.
“There were clearly some regulatory gaps that were highlighted through this, and I have no doubt that we’ll close the specific gaps that have been identified,” he said.
“I think we could burden the economy with a tremendous amount of excess regulation in response to this if we’re not careful.