Turner Report calls for more IT in bank risk management

Yesterday’s report from chairman of the Financial Services Authority Lord Turner recommends that banks manage their exposure to risk better through more effective use of IT.

The report said that banks’ decisions should be founded on up-to-date information from IT departments. Banks will, for example, need to have more and better managed data on their available capital and the risks involved in deals.

The news comes after a general backlash against the banking system, in which critics claim that more regulation of banks and fewer incentives for staff to take risks, such as big bonuses, would have avoided the current crisis.

Prime Minister Gordon Brown said that he had called for greater regulation and an end to unnecessary risk-taking ten years ago, and has since faced harsh criticism for not taking more action when he was Chancellor.

Lehman Brothers was the first bank to collapse in the onset of the credit crunch. Former UK COO of the bank James Martin has said that IT “has to provide completely reliable management information” in order for banks to operate responsibly.

Inatech has been working with the second largest bank in the UAE to implement transparent, secure and innovative banking technologies. The instituion's strategy is focussed on the customer working with Sharia law to maximise the faith people have in banking internationally.