Banking secrecy fiasco

On the 12th of this month, a private bank which has now achieved notoriety, publicly disclosed highly confidential information pertaining to a section of its client base, including names, addresses and of course bank balances and other details, to the world at large. They did it better than taking out advertising space in the newspapers - they sent it virally.  

After incalculable damage with far-reaching ramifications was done to those clients, and the banking industry as a whole, with the mere press of an unsecured button (yes, it was as simple as that), they then sent out another message ‘recalling’ the earlier message, which had naturally exploded by then, as if that message could possibly be recalled. Words fail to describe such conduct. That was more than a week ago. Since then a deafening silence has prevailed. Not a word from that bank. It’s as if it never happened. Not a word from the Central Bank either. Are they still regulating the banking system?

And the media, which always reports relatively much less serious bank robberies by helmet-wearing robbers with headlines occupying quarter of the newspaper page complemented by graphic visuals, is eerily silent on this massive robbery from within. No prizes for guessing how they have been neutered.  The rank and file of that bank have been left to handle furious clients with apologies which don’t even begin to make any sense, considering the outrage. The bank’s Board of Directors obviously sees no reason to respond with the appropriate principled and professional conduct the situation demands, and some of them obviously also do not see any reason to compromise the politically-engineered  windfalls they receive at this stage of their lives, with the directors’ fees of that bank being one of the highest. The top management are mirroring the conduct of the board by trotting around with fake smiles as if they are at the daily cocktail parties, shaking hands with irate clients and even proudly announcing their names! 

There was a time in the not-too-distant past when in the face of such disasters, professionalism and self-respect prompted immediate resignations in the name of all that is honourable; no longer. Recent appointments have shown that the stench that one leaves in one’s wake does nothing in today’s decadence to prevent getting responsible positions. Trust and confidence in that bank in particular and the banking industry in general have plummeted to the lowest levels. The question uppermost in people’s minds is, ‘if this happened in a bank which tried to make itself out to be the cock of the walk, is there any reason why it cannot happen anywhere else?’  And considering the evidence which has now come to light about a Chairman of a bank having manipulated the selling price of billions worth of his bonds to the EPF at a pre-arranged, higher-than-market price in the infamous bond scam, who can tell us with any assurance that the banks in the country are run professionally? How many board appointments will stand the scrutiny of the harsh light of day with regard to professional suitability? And at the rate top management of banks keep hopping from one bank to another, taking with them a good chunk of the business from the bank that they are leaving to the new bank they are joining without even a shred of morality, who can reassure us about the soundness of the industry when there is ample evidence internationally about the devastating repercussions of unprofessionalism in the industry? 

There are countries in the world where citizens have preferred to keep their money at home without entrusting them to banks because of such disasters. In these days of blatant criminality, many people who can access such facilities keep their valuables in safety lockers in banks. If a bank could not protect the safety of its clients’ confidential details, which is a basic function, are they capable of protecting the safety lockers of their clients from marauding gangs whose techniques get more sophisticated by the day? That’s food for thought. 

The carpet has a massive bulge which no one who is accountable seems to have any intention of flattening out. That’s characteristic of many devastating issues in this country. Indifference, passing the buck, coupled with the hope that the crippling severity of the issue will be forgotten with time, is the most common tactic used today. If this Government got anything right, it was the appointment a CB Governor who is a standout man and internationally respected. We the citizens require him to speak on this issue because he is the only person who can introduce some measure of reassurance to the banking industry. Mr. Governor, we are waiting. Your words are overdue.  

Citizen Fernando