Professor Philip Lane:

Let me provide what assurance I can that here, and across all Western financial systems, we have seen in recent years all sorts of failures by banks which in turn have led to large fines, and, depending on the system, individuals being held to account and in terms of the amount of capital the banks must hold these kind of conduct risks are widely understood to be a major risk factor facing banks. Investors, shareholders and so on have started quizzing management about being safe, not just fulfilling the least requirements possible under law but being consumer orientated. It will play out over several years. The reputational hit to the banks of these kinds of failure should lead to greater vigilance on the part of the shareholders, the board and regulators. It is a twofold response, in the first instance, from the boards and investors in these banks and in the second, from the regulators.