IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-319-90294-4_16.html
   My bibliography  Save this book chapter

Assessing and Measuring Banking Culture

In: Contemporary Issues in Banking

Author

Listed:
  • Beatriz Fernández Muñiz

    (University of Oviedo)

  • José Manuel Montes Peón

    (University of Oviedo)

  • Camilo José Vázquez Ordás

    (University of Oviedo)

Abstract

A crucial lesson to be learned from the latest financial crisis is the importance of the strength of the banking system. A strong banking system needs appropriate prudential regulation that requires institutions to have a level of capital that is high enough to absorb the losses they may suffer due to the risks they take. However, this is no longer enough. The crisis has shown that it is necessary to analyse the soundness of an entity including aspects related to banking culture as a fundamental driver of excessive risk-taking, misconduct and compliance risks. The pre-crisis banking culture was characterized by very poor standards of conduct, which not only led to putting the solvency of financial institutions at risk but also to manipulating the market and improperly marketing banking products and services, resulting in economic harm to clients and serious risk to the stability of the financial system as a whole. Having learned from this lesson, post-crisis banking regulation and supervision now promotes new practices and methods of forward-looking prudential supervision. This chapter reviews the evolution and current state of the issue, paying special attention to the possible methods that may be applied to the assessment and measurement of banking culture.

Suggested Citation

  • Beatriz Fernández Muñiz & José Manuel Montes Peón & Camilo José Vázquez Ordás, 2018. "Assessing and Measuring Banking Culture," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Myriam García-Olalla & Judith Clifton (ed.), Contemporary Issues in Banking, chapter 0, pages 363-387, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-319-90294-4_16
    DOI: 10.1007/978-3-319-90294-4_16
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:pmschp:978-3-319-90294-4_16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.