Stricter oversight needed as financial misconduct drives risk-taking in banking, says study

In pictures: Early banking in Malta

In the Maltese islands, banking can look back to a long and convoluted history, partly routine, partly virtuous, partly on the verges of criminality. Considering the impact banks have on everyday lives, the visual record they left behind proves meagre indeed.I have only found a few old postcards with a banking theme – all of...

Stricter oversight needed as financial misconduct drives risk-taking in banking, says study

Banks facing regulatory sanctions for financial misconduct tend to adopt riskier business practices, according to new research.

Enhanced Regulation Essential as Financial Misconduct Fuels Risky Behavior

Recent research highlights the unsettling trend of banks engaging in riskier business practices when they are subjected to regulatory sanctions for financial misconduct. This correlation raises serious concerns regarding the structural integrity of financial institutions and the overall stability of the financial system as a whole. The study, which involves collaboration between researchers from the University of East Anglia (UEA), the US Depart…