ADVANCING BITCOIN BANKING IMF ASKS BANKS TO CURB EXCESSES

In Monday’s Global Financial Stability Report, the IMF warned of a coming liquidity crisis and ramp-up in market volatility. Digging deeper into the report, CCN uncovers IMF admissions of the banking sector’s failure to manage risk, as well as, advice to banks to prepare for a public backlash due to perceived excesses.
Part three of the IMF’s Global Financial Stability Report entitled Risk Taking By Banks: The Role of Governance and Executive Pay has been an insightful read. In a nutshell, the report has the IMF rapping the global banking industry over the knuckles for excesses and a lack of accountability. Like a scolding headmaster, the IMF has to explain to a bunch of badly-behaved schoolboys that things have changed and that they can no longer do as they please – especially not with society watching.
IMF: Society’s Point of View
In the chapter introduction, the IMF implores banks to assist in the task of managing perceptions:
…conflicts of interest between bank managers, shareholders, and debt holders can lead to excessive bank risk taking from society’s point of view.
Oh, yes, so conflicts of interest between bank managers, shareholders, and debt holders can lead to excessive bank risk taking… What’s the part at the end? From society’s point of view?
Hold on. Conflicts of interest don’t lead to excessive bank risk taking in their own right, but only from society’s point of view?
That’s what it says…

This post was published at Crypto Coins News on October 15, 2014.