Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Our money is still safe in the bank

20.05.2008
Why do we still trust the bank? And why do we still entrust our money to banks? These questions are the focus in the inaugural lecture 'Protecting Financial Market Integrity.

Roles and Responsibilities of Auditors' from Professor Peter A.M. Diekman RA. He contends that both the internal and public accountant have an important duty in monitoring the financial market. On Thursday, 15 May 2008 Diekman accepted the special chair in Compliance & Risk Management, endowed by the Stichting Toezicht en Compliance (Supervision and Compliance Foundation), at the School of Law, Erasmus University Rotterdam, the Netherlands.

In his lecture Diekman gives an overview of the growing number of measures that have been taken in the past decades to protect the financial markets. As early as 1980 the EU agreed on regulations to protect the financial market against abuse. At that time, fighting the drug trade was a major concern, as was reigning in the financial yields from that activity. Fighting terrorism also became an important motive, especially after the terrorist attacks in New York and Washington in September 2001.

Diekman says the regulations have been successful and supervision has been strengthened. Both public and internal accountants play an important role in this. The law has assigned public accountants various obligations to report to regulators like the Nederlandsche Bank, the Netherlands Authority for the Financial Markets, and the Financial Intelligence Unit Nederland. Diekman shows that public accountants apply this reporting obligation broadly in practice. They pass on more information than strictly required by law.

The internal accountant also has an important task in the context of monitoring integrity and interprets his tasks more broadly than the law prescribes. The internal accountant works largely independently and reports to the highest level of leadership in the business, with a direct reporting line to the Supervisory Board. Within financial companies there are separate departments for Compliance, Risk Management and Internal Audit.

Diekman says there is still enough reason to have trust in the banks, despite the great unrest on the financial markets. “I see the current credit crisis primarily as a necessary economic correction. Accountants have played an important role in valuing the assets on the balance sheet via their audit of banks’ annual statements. They put pressure on the US banks to write off outstanding loans that could no longer be repaid. It shows that the system of checks and balances between banks’ management, regulators and accountants actually works.”

Peter Diekman (1954) studied business economics and accountancy at Erasmus University Rotterdam. He started his career at KPMG in Amsterdam and went on to serve as head of Internal Audit at four major companies. Until March 2008 he was Global Head of Group Audit at ABN AMRO Bank NV. He has been involved in non-degree education for accountancy at the EUR for twenty years.

Yvette Nelen | alfa
Further information:
http://www.eur.nl/english

More articles from Business and Finance:

nachricht Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Safe glide at total engine failure with ELA-inside

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded after a glide flight with an Airbus A320 in ditching on the Hudson River. All 155 people on board were saved.

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded...

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

New pop-up strategy inspired by cuts, not folds

27.02.2017 | Materials Sciences

Sandia uses confined nanoparticles to improve hydrogen storage materials performance

27.02.2017 | Interdisciplinary Research

Decoding the genome's cryptic language

27.02.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>