Tag: Industry Analysis

Like all business success, innovative success is based on matching capabilities to market.

The most effective control is other parties’ diligence in assessing the businesses with which they deal.

If you aim to create a dynamic, successful business, a state-owned utility is not the place to start.

Regulation as supervision can be simultaneously extensive and intrusive, yet ineffective and prone to regulatory capture. History suggests that supervision is rarely a success.

The assessment of the value of new products is best carried out, not by manufacturers nor regulators but by retailers in close touch with the needs of their customers.

If financial institutions are to survive, they must behave more like supermarkets

Government underwriting of deposits should be matched by assets of comparable quality. Otherwise the mismatch of risk provides an unjustifiable public subsidy to the banking sector.

The Reform of Banking Regulation We should spend less time trying to ensure that our regulators can regulate financial behemoths with turnovers bigger than the...

In the unlikely event that the G20 leaders can spare a few moments between photo opportunities and ritual denunciation of greedy bankers, they might give urgent attention to the question of how to extricate themselves from the underwriting of failed banks.

It is particularly easy for those who work in financial institutions to make the mistake of believing that their success is the result of exceptional skill rather than good fortune. Until vanity is vanquished, I anticipate that diversification to the level of incompetence will continue to be a powerful element in business behaviour.