On June 20, the New York Fed hosted a half-day conference focused on culture in financial services. The event was part of the Governance and Culture Reform initiative’s ongoing efforts to understand and influence industry norms to help create a safer and more trustworthy banking sector. Here are the key themes that emerged during the day’s discussions:
Misconduct and poor organizational cultures in the financial industry have far-reaching and material consequences for the American people and economy. To address and help mitigate risk from misconduct and organizational culture, the New York Fed established the Governance and Culture Reform initiative, which examines how formal organizational structures and underlying drivers of individual and group behaviors impact outcomes at financial firms. This work began in the aftermath of the Global Financial Crisis, a period marked by widespread misconduct and a corresponding increase in litigation and enforcement activity in the financial industry, with scandals continuing to this day.
The New York Fed held the latest installment of its long-standing webinar series that examines culture and conduct in financial services on October 4. “Culture and the New Workplace” explored how work culture has been influenced by changing circumstances in the post-pandemic world, by technology, and by the expectations of employees and employers.
As part of its initiative to foster discussion about culture and conduct in the financial services industry, the New York Fed last month hosted a virtual event titled “Shifting Norms? The Intersection of Technology and Culture in Financial Services.” This webinar — the latest in a series — focused on how technology and digitization have disrupted or otherwise influenced culture in financial services.
On Tuesday, January 14, New York Fed President John Williams spoke at an event hosted by the Banking Standards Board, the New York Fed, and the London School of Economics about culture in the financial services sector.
On Tuesday, June 4, New York Fed President John Williams spoke at the fifth conference on culture in financial services hosted by the Bank.
New York Fed Executive Vice President Kevin Stiroh, who heads the Supervision Group, spoke about corporate culture in the finance industry at a recent conference. He identified misconduct risk — or the potential for behaviors or business practices that are illegal, unethical, or contrary to a firm’s stated beliefs, values, policies, and procedures — as a major consideration for firms when it comes to risk management.
This is the final essay in a series leading up to Reforming Culture and Behavior in the Financial Services Industry: Progress, Challenges, and the Next Generation of Leaders, a conference the New York Fed is hosting on June 18.
This essay is being published from the New York Fed by a guest writer as part of Reforming Culture and Behavior in the Financial Services Industry: Progress, Challenges, and the Next Generation of Leaders. The views of the author are his own and are offered by the New York Fed to contribute to discussions on this topic.
This essay is being published from the New York Fed by guest writers as part of Reforming Culture and Behavior in the Financial Services Industry: Progress, Challenges, and the Next Generation of Leaders. The views of the authors are their own and are offered by the New York Fed to contribute to discussions on this topic.