Page 9 - Monocle Quarterly Journal Vol 1 Issue 1 Q4

Foreword
Since the turn of this century the practice of banking has experienced such tremendous existential change as to be incomparable to the enviable industry it once was during the roaring nineties. As
management consultants – working over the past fteen years speci cally within banking – we have found ourselves on the frontlines of the battle between the purest form of uninhibited capitalism, and the opposing forces calling for state intervention.
Certainly, many of the wounds su ered by banks since the crisis of 2007 have been self-in icted. ere will, however, be certain deeply negative and lasting consequences to much of the codi ed law that has been scribbled out of the populist revolt that followed.
To a large degree it has been forgotten that banking is the engine room of the body economic. Without it functioning as a viable privately-run industry, it will serve to magnify growing inequality as well as to magnify the dissonance between leadership and the populace. e western world has recently taken a sharp turn to the right. It has become inward- looking, prejudiced, parochial, and angry. Should the trend continue, we may soon witness banking becoming adjunct to the state, and an instrument of its political objectives.
As consultants we have had the privilege to travel and work in many diverse cultures across the world. In the run-up to the crisis we were privy to thin-capital bu ers, high leverage and exceptional ROEs. e themes today are very di erent: anti-money laundering, reining in tax evasion, stress testing, and risk process audits. In the breadth of our experience we have observed a steady grinding down of the ability for banks to innovate and accelerate the economy.
We intend for this Journal to document our thoughts, to point out the internal contradictions, perhaps even to provide a small voice for caution against the maelstrom of political and economic chaos that is now commonplace.
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