Banks paid $321 bn in fines since financial crisis– BCG

Banks paid $321 bn in fines since financial crisis– BCG

Banks across the world have paid about 321 billion dollars in fines since the 2007-2008 financial crisis as regulators stepped up scrutiny, according to a note by the Boston Consulting Group (BCG).

Almost 10 years since the financial crisis, the banking industry has not completely recovered, BCG said in an industry report.

North American banks accounted for nearly 63 per cent of the total fines, or about 204 billion dollars, during 2009-2016, the consultancy firm said.

While US regulators have been more effective in imposing penalties and recovering fines from the banks, their counterparts in Europe and Asia are likely to step up pace, according to the BCG report.

The number of individual regulatory changes that banks must track on a global scale has more than tripled since 2011, to an average of 200 revisions per day, the report said.

Even though, US President Donald Trump has ordered reviews for possible regulatory changes and legislations modifying the Dodd-Frank Act, the consulting group said regulatory impacts  would continue to cost banks a lot going forward.

Trump and other critics of the Dodd-Frank law say its regulations have hindered lending.

In February, Trump ordered reviews of major banking rules that were put in place after the 2008 financial crisis, in favour of looser banking regulation.

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