Is de-risking an over-reaction to over-regulation?

The resulting effect is that ‘risk avoidance' appears to have replaced ‘risk management' and banks have embarked upon a wholesale culling of customers deemed to be ‘outside of risk appetite'. The phrase given to this practice is ‘de-risking' and, while many regulatory authorities insist it is not in line with international guidelines, the unfortunate reality is it has become a recognised problem within the global financial services sector and one which has been termed a large-scale market failure. The increase in regulatory activity means increased costs to banks - either in the face ...