July 13, 2009

A NEW report on the banking sector warns against a quick-fix reaction to current problems and says the future success and survival of banks mired in the financial crisis will depend on them getting the fundamentals right, including areas such as governance, risk and control and financial management.The report, from PricewaterhouseCoopers (PwC), attempts to provide a blueprint for change.

It advises that a clear strategy and vision will be essential for the banking industry but warns that it must also get all the fundamentals right.PwC partner Ronan Doyle said banks needed to act quickly to develop comprehensive plans, first to stabilise their businesses and then to move forward. "Typical reactions from the banking industry to the current financial crisis have, understandably, been short term in nature and, in many cases, driven by the need for survival.