Bank CEOs, huddled in private in Davos, worry about competition, economy

© Reuters. JPMorgan Chase CEO and Chairman Jamie Dimon gestures as he speaks throughout the U.S. Senate Banking, Housing and City Affairs Committee oversight listening to on Wall Avenue companies, on Capitol Hill in Washington, U.S., December 6, 2023. REUTERS/Evelyn Hockstein/F

By Stefania Spezzati and Megan Davies

DAVOS (Reuters) – Financial institution CEOs assembly in personal on the World Financial Discussion board on Wednesday aired issues concerning the aggressive dangers from fintech companies and personal lenders, and complained about onerous rules, a supply acquainted with the matter mentioned.

On the assembly in Davos, attended by dozens of CEOs together with JPMorgan Chase & Co. (NYSE:)’s Jamie Dimon, executives additionally mentioned a difficult international financial image, with shifting rate of interest insurance policies and rising debt, one other individual with information of the assembly instructed Reuters.

Financial institution leaders have been noticed going into the assembly by Reuters. Earlier than the assembly, at the least one banking CEO instructed Reuters they see geopolitical dangers doubtlessly derailing rate of interest cuts.

The personal session was led by Barclays CEO C.S. Venkatakrishnan and Manulife CEO Roy Gori, in accordance with a duplicate of the agenda seen by Reuters. The matters included navigating danger in opposition to a backdrop of geopolitical stress, macroeconomic uncertainty and technological disruption.

The pushback on regulation comes after Wall Avenue banks this week urged the U.S. Federal Reserve to utterly overhaul a draft rule mountain climbing financial institution capital, in search of to water down the “Basel Endgame” proposal that bankers say will damage the financial system.

UBS Chairman Colm Kelleher, talking earlier in Davos, mentioned regulators ought to concentrate on so-called shadow lenders that are not topic to the identical guidelines and usually tend to trigger the following disaster.

Financial institution failures in america and Europe in March reignited a debate concerning the dangers lenders can pose to the monetary system, even when capital buffers amongst tightly regulated lenders helped stem contagion fears.

In the meantime, underneath a long-awaited transfer within the U.S., new rules anticipated to be finalized this yr ought to permit customers to extra simply switch their knowledge between monetary providers suppliers, which might immediate competitors with monetary expertise companies.

There have been about 60 CEOs of world monetary companies together with banks and insurance coverage firms current, the primary supply mentioned.

Amongst regulation issues, UK supervisors have been mentioned by some as being notably harsh, adopted by European regulators, that supply mentioned.

Officers for JPMorgan did not have an instantaneous remark. Spokespeople for Barclays and Manulife could not instantly be reached. Officers on the European Central Financial institution (ECB) and Britain’s Prudential Regulation Authority declined to remark.

The previous chair of the ECB’s supervisory board mentioned in September that the common capital necessities for banks deemed vital to the EU can be considerably larger underneath U.S. guidelines.