CFO reported that, according to Richard Reynolds, national banking and capital markets internal audit leader at PricewaterhouseCoopers, auditors have to be more diligent in their oversight of banks because financial institutions continue to face geopolitical and macroeconomic headwinds.
CFO noted Reynolds said in a webcast that although bank profitability is the highest it’s been since 2006, some of that profitability was accomplished by lowering expenses as opposed to outright growth.
According to CFO, Walter Smiechewicz, a managing director in risk assurance at PricewaterhouseCoopers, said in the webcast that auditors need to be aware when a loan growth begins to slow, since this can often be followed by a slippage in bank underwriting standards, leading to less profitable loans being brought onto the balance sheet.
To read the full CFO article click here.
To view the PwC webcast (registration required): click here.