In a speech delivered last week, Erik Thedéen, Chair of the Basel Committee on Banking Supervision and Governor of Sveriges Riksbank, argued that regulation and supervision should be seen not as barriers to growth, but as strategic assets for banks and the broader economy.
He pushed back against the view that capital and liquidity rules are mere costs, stressing that well-capitalised and liquid banks gain competitive strength. They can continue lending in crises, preserve franchise value, and win market share when weaker peers pull back. But he placed equal weight on supervision as a “second set of eyes,” offering independent challenge, cross-institutional insights, and early warnings that even well-run banks cannot generate internally. "Supervisors are not rivals standing in the way of banks' success," Thedéen argued. “Instead, banks should look to supervisors as a partner in resilience.”
This content is available to paid Members of Starling Insights.
If you are a Member of Starling Insights, you can sign in below to access this item.
If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform. Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.
Join The Discussion
Sign in and be the first to comment.