• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases
      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview
      • Multimedia Gallery
      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview
      • Trending Topics
      • All Trending Topics
  • Business & Money
      • Auto & Transportation
      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview
      • Business Technology
      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview
      • Financial Services & Investing
      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview
      • General Business
      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview
  • Science & Tech
      • Consumer Technology
      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview
      • Energy & Natural Resources
      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview
      • Environ­ment
      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview
      • Heavy Industry & Manufacturing
      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview
      • Telecomm­unications
      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview
  • Lifestyle & Health
      • Consumer Products & Retail
      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview
      • Health
      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview
      • Sports
      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview
      • Travel
      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview
  • Policy & Public Interest
      • Policy & Public Interest
      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview
  • People & Culture
      • People & Culture
      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview
      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Policy & Public Interest
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • People & Culture
    • People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

KPMG Survey: Banking/Financial Services Executives See Biggest Regulatory Impact From Systemic Risk and Consumer Protection

Industry Leaders Expect Improved Profitability, Revenue, and Employment in 2010 and 2011


News provided by

KPMG LLP

Jun 23, 2010, 09:00 ET

Share this article

Share this article


NEW YORK, June 23 /PRNewswire/ -- Senior banking and financial services executives expressed the view that financial reform legislation related to systemic risk and the creation of a consumer protection agency is likely to be enacted and that they expect these regulations to most impact their businesses if implemented, according to a recent survey by KPMG LLP, the audit, tax, and advisory firm.

In the KPMG survey, nearly 90 percent of the banking and financial services executives believed systemic risk regulation will be enacted and more than half expect this regulation to most impact their businesses if implemented.  The creation of a consumer protection agency was cited by 87 percent of the executives as likely to be enacted and was cited second most frequently as a regulation most impacting their business if implemented.

"Financial regulation is expected to have a significant impact on the financial services industry," said Scott Marcello, deputy leader of KPMG LLP's Financial Services practice.  "While the impact will vary depending on the final form of the legislation, it is likely to have sweeping implications -- including governance, risk, compliance, and capital -- for financial institutions.

"Despite the reality of impending financial reform, banking and financial services executives are bullish about their business prospects in the current year and 2011, with many investing for long-term growth and specifically focused on traditional services, emerging technologies and M&A as a means to generate growth."

Further Improvement in Business Conditions

Most executives believed business conditions in their sector are better now than one year ago and the vast majority expected conditions to continue to improve over the next year.

According to the KPMG survey, better than 60 percent of banking and financial services executives said quarterly revenue and profitability were better than a year ago and more than 75 percent said both would be better in 2011.  More than 50 percent said their company's ability to get financing and raise capital over the past six months had improved.

Employment Picture Improving

When asked specifically about headcount for 2010, 50 percent said they expected to add headcount, while 22 percent expected to make headcount reductions.  When aggregated, the net change in headcount for 2010 is expected to be an increase of 1.4 percent, according to the KPMG survey.  

When asked about the 2011 employment picture, 48 percent expected it to be better and 42 percent expected it to be the same, while only 10 percent thought it would be worse.

Investing for Growth

According to the KPMG survey, banking and financial services executives said they were placing their current strategic emphasis on investing for long-term growth (65 percent) instead of cost-cutting for survival (35 percent).  

When asked to identify the top three biggest drivers of revenue growth for the next one-to-three years, nine out of 10 respondents and 100 percent of banking executives cited traditional services such as checking and savings accounts, credit cards, and standard investment vehicles.  Executives were also looking to emerging technologies (66 percent) and mergers and acquisitions activity (60 percent) as significant revenue growth areas.

When asked to identify the three most likely factors to hinder economic recovery in their sector, continuing high national unemployment (62 percent), the distressed real estate market (46 percent), and increased government regulation (43 percent) were cited most frequently.

"Clearly, there are still obstacles to a full-blown financial industry recovery," said Tony Anzevino, partner-in-charge of KPMG LLP's Banking and Finance practice.  "However, the banks and financial services institutions that get a head start on preparing for the impending regulation and remain focused on growth opportunities in this environment may gain a competitive advantage.

"Banks focused on traditional services will need to continuously manage costs relative to their peers in order to grow profitably -- while providing competitive products and excellent customer service."

Additional Write-downs and Bank Failures Expected

The KPMG survey also found that 71 percent of banking and financial services executives expected more than normal write-downs related to their real estate assets, while 42 percent expected more than normal write-downs related to other assets.

When asked to forecast the number of bank failures in 2010 compared to 2009, 40 percent of respondents expected there to be more, 31 percent expected about the same amount, and 29 percent expected less.

Other Regulatory Developments Deemed Likely

According to the KPMG survey, 84 percent of respondents believed that regulation related to improved quality and transparency with respect to capital is likely to be enacted as is regulation to address unregulated or minimally regulated parts of FS.  These regulations were ranked by respondents as the third (35 percent) and fourth (31 percent) most likely regulations to impact their businesses if implemented respectively.    

Fifty percent of the respondents believed that regulation limiting the size of financial institutions is likely; it also ranked as the fifth (25 percent) most likely regulation to impact their businesses if implemented.

At least three quarters of the executives also cited the expansion of fiduciary responsibilities, the "Volker rule," assessing fees and taxes on banks that received Troubled Asset Relief Program (TARP) funds, and proprietary trading limits not covered by the "Volker rule" as likely to be enacted.  However, less than one quarter of the executives believed these regulations would be among the most impactful on their businesses.

Additionally, 43 percent of respondents said the most important hindrance to lending in the financial sector was regulations requiring increased capital.

Investment Management Findings

Over the next 12 months, respondents indicated that investor capital would likely go into the following types of investment offerings proportionally: traditional long-term funds (35 percent), private equity funds (19 percent), real estate funds (14 percent), venture capital (13 percent), hedge funds (12 percent), and others (7 percent).

When asked about the likelihood that additional government regulation of the investment management industry would improve trust between clients and advisors, 40 percent of respondents said it was likely and 60 percent said it was unlikely.

THE KPMG INDUSTRY PULSE SURVEY

The KPMG survey was conducted in April/May 2010 and reflects the responses of 134 CEOs and other C-level suite executives in the banking and financial services industry.  There were 69 respondents amongst banks and 65 respondents from other financial services companies.  About 29 percent of respondents work for institutions with annual revenues exceeding $1 billion; 25 percent have annual revenues in the $250 million to $1 billion range; and 46 percent have revenues below $250 million.  Clarion Research Inc. conducted the survey and compiled the data.

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the U.S. member firm of KPMG International Cooperative ("KPMG International").  KPMG International's member firms have 140,000 professionals, including more than 7,900 partners, in 146 countries.

The views and opinions expressed in the survey results are based on the responses of the survey participants and do not necessarily represent the views and opinions of KPMG LLP.

Contact:

Ichiro Kawasaki / Ray Zardetto


KPMG LLP


Tel: 201-307-8640 / 201-307-8494


E-mail:  [email protected] /


[email protected]

SOURCE KPMG LLP

Modal title

    Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

    Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

    About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement

    • Asia
    • Brazil
    • Canada
    • Czech
    • Denmark
    • Finland
    • France
    • Germany
    • India
    • Israel
    • Italy
    • Mexico
    • Middle East
    • Netherlands
    • Norway
    • Poland
    • Portugal
    • Russia
    • Slovakia
    • Spain
    • Sweden
    • United Kingdom

    My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2021 Cision US Inc.