Davos:
World's top banks including US-based JP Morgan and UBS of Switzerland today said there is a need for new strategy to chart the future growth path but warned that any regulatory over-burden would work against not only the banks but also the overall economy and the common people.
"Banks need to chart a new strategy as it is clear from the events in recent years that the current strategy has not worked," UBS chairman Alex Weber said at the World Economic Forum's annual meeting.
One of the co-chairs of the meeting, Mr Weber said that UBS has already embarked on a new strategy. It urged other banks to do the same to address the needs of the economy and tap the growth potential in emerging markets and other places where recovery process is undergoing, albeit at a muted pace.
Speaking at a session on the Global Financial Context, JP Morgan chief Jamie Dimon said the banks are still doing the right things, but there was lot of misinformation out there to present them as devils.
Asked whether there was a need for more regulations for banks, especially in the backdrop of trading business losses affecting other segments like deposit taking and lending, Mr Dimon said it is not about more, or less, regulation, but rather about right regulations.
"The public perception about banks would also be governed by what the government and regulators do to tackle the issues faced by banks," Mr Weber said.
The WEF meet is taking place amid concerns about slow growth and persisting risks in the global financial system.
With most of the developed nations embracing easy money policy, fears are on the rise about high volatility in capital flows especially into the emerging markets, including India.
