Museum & Visits Regional Economy Data & Statistics Careers Blog Press Center

Governance & Culture Reform

New York Fed

Hennessy: Emerging Trends in Culture Reform: The New York Fed’s Perspective

In remarks at 1LoD's Culture & Conduct Deep Dive event, Head of the Governance and Culture Reform Initiative James Hennessy discussed three emerging factors that have deepened the study and analysis of culture.

(DATE: MARCH 22, 2022)

Hennessy: Shelter from the Storm

In a keynote address at the Annual Culture and Conduct Forum for the Financial Services Industry, SVP James Hennessy provides an update on the culture initiative and thoughts on psychological safety, a topic that the COVID–19 pandemic has underscored as a key element of a well-functioning workplace culture.

(DATE: November 26, 2020)

Stiroh: The Impact of the Pandemic on Cultural Capital in the Finance Industry

In remarks at the Risk USA Conference, EVP Kevin Stiroh discusses the importance of a firm's culture in determining business outcomes and how that culture may be impacted by the Covid-19 pandemic.

(DATE: NOVEMBER 16, 2020)

Williams: Banking Culture: The Path Ahead

In welcoming remarks at the New York Fed's fifth conference on culture in financial services, Building Cultural Capital in the Financial Services Industry: Emerging Practices, Risks and Opportunities, President John C. Williams, discussed what can be done to improve culture in financial services.

(DATE: JUNE 4, 2019)

Stiroh: Reform of Culture in Finance from Multiple Perspectives

In remarks at the GARP Risk Convention, EVP Kevin Stiroh identified misconduct risk as a major consideration for firms and discussed culture from the perspective of boards of directors, senior management, industry groups, and the official sector. He also discussed the idea of “cultural capital,” an intangible asset that impacts what a firm produces and how it operates.

(DATE: FEBRUARY 26, 2019)

See more speeches

Publications

Examining the Intersection of Technology and Culture in Financial Services

The New York Fed hosted a webinar with a panel of experts in business, psychology, and organizational theory focused on how technology and digitization have disrupted or otherwise influenced corporate culture in the financial services industry. Here are highlights from the discussion.

(DATE: AUGUST 15, 2022)

Lessons on Culture: A Year in Review

In 2021, the New York Fed’s Culture Initiative produced six webinars, nine podcasts episodes, and heard from a broad range of experts about organizational culture. Read this article for look back at the key themes and lessons on culture from 2021.

(DATE: March 2022)

Bank Culture and the Official Sector: A Spectrum of Options

Culture is a topic of growing interest in financial services. This Article can prompt conversations with academics, regulators, and bankers about how culture contributes to decisions and behaviors in the financial services industry.

(DATE: February 2020)

The Economics of Why Companies Don’t Fix Their Toxic Cultures

In this Harvard Business Review article, Executive Vice President Kevin Stiroh discusses the role culture plays in corporate misconduct, and shares his perspective on why these problematic cultures persist.

(DATE: MARCH 22, 2018)

Misconduct Risk, Culture, and Supervision

In this white paper, the conceptual argument is made for why supervisors should care about a financial institution's culture and how it is supports supervisors' approach to risk management.

(DATE: DECEMBER 7, 2017)

See more official sector publications

Events

Shifting Norms? The Intersection of Technology and Culture in Financial Services

This webinar focused on how technology and digitization have disrupted or otherwise influenced culture in financial services.

(DATE: JULY 6, 2022)

Trust in Banks: Where Are We Now?

This webinar explored the evolution and current state of trust in financial services and how public perceptions about industry culture contribute to that trust.

(DATE: MARCH 29, 2022)

Culture Diagnosis and Behavior Change—Learnings from the Field

This event featured a multi-disciplinary panel of practitioners discussing proven and emerging approaches to understanding and influencing organizational culture.

(DATE: SEPTEMBER 27, 2021)

Culture in a Post-Pandemic Workplace

Our fifth webinar in the series focused on how norms are transmitted in various work environments and the potential impacts of hybrid workplaces on cultural elements like collaboration and inclusion.

(DATE: July 16, 2021)

New York Fed Web Series on Culture: Purpose and the Employee as Stakeholder

In this webinar, panelists discussed the role of organizational purpose in building healthy cultures; the ways in which the rise of employee activism affects organizational culture; and increased demand for corporations to engage on contemporary social issues and engage with a broader group of stakeholders.

(DATE: May 06, 2021)

Diversity, Equity & Inclusion and Culture

In this virtual event, panelists explored questions related to how and why norms and biases change, the role of leaders and institutions in driving that change, and why motivations matter.

(DATE: MAY 1, 2021)

Understanding Behavioral Risks

In this pair of webinars, Jim Hennessy moderates a discussion among financial sector practitioners examining how they identify and mitigate behavioral risks in their organizations.

(DATE: JULY 2021)

Trust & Decision Making

In this event, panelists offered diverse perspectives from neuroscience, behavioral science, financial services, technology, and space flight to help us better understand how trust and habits of decision-making affect organizational culture and outcomes. The discussion covered the formation and erosion of trust in colleagues, employers and systems, and considered links between trust and decision-making.

(DATE: DECEMBER 2, 2020)

Partnerships in Building Ethical Norms: Governance & Culture Reform in the Financial Services

This webinar highlighted two initiatives in which the New York Fed has worked with the industry to promote ethical norms: the Education and Industry Forum’s case studies, which present ethical dilemmas faced by junior employees in financial firms, and the FX Global Code, a set of principles for participants in the international foreign exchange market published in 2017.

(DATE: OCTOBER 19, 2020)

Building Cultural Capital in the Financial Services: Emerging Practices, Risks and Opportunities

This conference provided a multi-disciplinary view on persistent misconduct in the financial industry and highlighted the effects of societal changes and new technologies on culture within firms.

(DATE: JUNE 4, 2019)

Reforming Culture and Behavior in the Financial Services Industry: Progress and Challenges

This event built upon previous New York Fed conferences on reforming culture and behavior in the financial services industry to assess progress to date, explore ongoing and new challenges and prepare the next generation of leaders to continue driving cultural reform.

(DATE: JUNE 18, 2018)

See more events

Other Resources

Speeches

Woolard: Opening Up and Speaking Out: Diversity in Financial Services and The Challenge to be Met

Woolard suggests that how a firm approaches diversity and inclusion tells us a lot about its culture. However, while things are moving in the right direction, progress has been slow.

(DATE: DECEMBER 19, 2018 | SOURCE: FINANCIAL CONDUCT AUTHORITY)

Clayton: Observations on Culture at Financial Institutions and the SEC

In a speech at Reforming Culture and Behavior in the Financial Services Industry: Progress, Challenges, and the Next Generation of Leaders, Jay Clayton, SEC Chairman, spoke on the importance of developing, improving and reinforcing positive culture in financial institutions.

(DATE: JUNE 18, 2018 | SOURCE: U.S. SECURITIES AND EXCHANGE COMMISSION)

Byres: The Incentive to Fly Safely

In his regulatory address at the AFR Banking & Wealth Summit in Sydney, Wayne Byres, APRA Chairman, focused on incentives and accountability in the financial sector.

(DATE: APRIL 4, 2018 | SOURCE: AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY)

Bailey: Transforming Culture in Financial Services

In a speech in London, Andrew Bailey, Chief Executive, Financial Conduct Authority, focused his remarks on understanding the drivers of poor conduct, developments of recent years, and the importance of good diversity in the workplace.

(DATE: MARCH 19, 2018 | SOURCE: FINANCIAL CONDUCT AUTHORITY)

See more speeches

Industry Publications

Group of 30: Banking Conduct and Culture: A Permanent Mindset Change

In their latest report, the G30 focuses on two fundamental questions:

How much progress has the banking industry made in conduct and culture 10 years on from the global financial crisis; and
In what areas should banks continue to press on, and what evolving questions should they be mindful of going forward?

(DATE: November 2018 | SOURCE: Group of Thirty)

FMSB publishes new financial markets misconduct research

The FICC Markets Standards Board (FMSB) published a Behavioural Cluster Analysis study that reviewed the behavioural patterns in 390 cases of misconduct over an extended period of time, covering 26 countries and multiple asset classes.

(DATE: JULY 2018 | SOURCE: FMSB)

U.K. Banking Standards Board: 2017/2018 Annual Review

The Banking Standards Board (BSB) published its 2017/2018 Annual Review, which is a result of the largest ever survey of behavior, competence and culture in U.K. banking. The report paints a picture of the banking sector based on the views of more than 36,000 people working in 25 banks and building societies and gives an overview of the BSB's work over the past 12 months.

(Date: March 2018 | Source: Banking Standards Board)

U.K. Banking Standard Board: Annual Review 2016/2017

The Banking Standards Board (BSB) annual review paints a picture of the banking sector based on the views of more than 28,000 people working in banks and building societies across the U.K. The BSB welcomed the engagement of a diverse range of firms, all keen to learn more about managing their own organizational culture.

(DATE: MARCH 2017 | SOURCE: BANKING STANDARDS BOARD)

See more industry publications

OFFICIAL SECTOR PUBLICATIONS

Hong Kong Monetary Authority

Focused review on incentive systems of front offices in retail banks.

(DATE: NOVEMBER 2021 | SOURCE: HONG KONG MONETARY AUTHORITY)

Bank of England Working Paper on Organizational Culture and Bank Risk

The Bank of England released this working paper linking indicators of poor culture to higher risk outcomes.

(DATE: MARCH 2021 | SOURCE: BANK OF ENGLAND)

Australian Prudential Regulation Authority: Information Paper Outlining GCRA Approach

The Australian Prudential Regulation Authority (APRA) shared its plans to scale up significantly its efforts to lift standards of governance, culture, remuneration and accountability (GCRA) across the industries it regulates.

(DATE: NOVEMBER 2019 | SOURCE: AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY)

Australian Prudential Regulation Authority: Final Report on Inquiry into the CBA

The Australian Prudential Regulation Authority (APRA) released the Final Report of the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).

(DATE: MAY 2018 | SOURCE: AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY)

Financial Conduct Authority: Transforming Culture in Financial Services Discussion Paper

The FCA published a discussion paper that includes a set of essays that discuss what a good culture might look like, the role of regulation and regulators, how firms might go beyond incentives, and how to change behaviour for the better.

(DATE: MARCH 12, 2018 | SOURCE: FINANCIAL CONDUCT AUTHORITY)

Financial Stability Board: Stocktake of Efforts to Strengthen Governance Frameworks

The Financial Stability Board (FSB) published a report on efforts being undertaken by international bodies, national regulators, industry associations and firms on developing the use of governance frameworks to address misconduct risk.

(DATE: MAY 2017 | SOURCE: FINANCIAL STABILITY BOARD)

See more official sector publications

About This Initiative

The New York Fed's Governance & Culture Reform initiative is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.

The Path Ahead

“The journey toward reforming culture in the banking and financial services industry is a long one. And there’s no single action that a regulator or a bank can take to make it happen. Getting it right is going to require the will and expertise of regulators, financial services firms, academics, and practitioners. And while changing organizational culture is a long-term, complex, and challenging task, I’m optimistic that we can and we will make progress. And the Federal Reserve Bank of New York is committed to being a partner on that journey.”

-- New York Fed President and CEO John C. Williams, “Banking Culture: The Path Ahead” (June 2019)

Disclaimer

Except where expressly indicated, none of these materials necessarily represent the views of the New York Fed or any other part of the Federal Reserve System.

The Teller Window

For additional information on the New York Fed’s Governance & Culture Reform initiative, see The Teller Window.

The Education and Industry Forum

The New York Fed’s Education and Industry Forum (EIF) brings together representatives from business schools and senior industry professionals to integrate ethical decision-making into the education of the next generation of the financial services workforce.

Contacts

By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.

Governance & Culture Reform

Hennessy: Culture and Conduct: Key Learnings and the Year Ahead from the New York Fed

Podcast: Trust, Technology, and The New Workplace

The New York Fed’s Governance and Culture Reform Initiative: An Overview

The Evolving Workplace and its Influence on Organizational Culture

Culture Web Series: Culture and the New Workplace

Full Resource List