Legislators and regulators are trying to positively change behaviour
in banks and other financial institutions by imposing regulatory
requirements aimed at modifying culture, with an emphasis on
diversity and inclusion. This has raised numerous questions, such
as:
• Will this help make institutions more resilient and overcome
groupthink?
• How intrusive should the regulatory requirements be with
respect to an institution’s internal management?
• What can be learned from the 2008 financial crisis and its
aftermath with respect to institutions’ behaviour?
It has been recognised that the causes of the financial crisis had
links to behaviour, culture and diversity issues. There were multiple
failures—short term thinking was incentivised while effective
internal challenge was not. This panel will consider preventative
measures that should be taken. For example, European Union
banks and investment firms are now required to have diversity
policies under the Capital Requirements Directive and Solvency II. 

In addition, regulators are starting to carry out assessments based
on culture, using the learnings of organisational psychology.