Tuesday, December 02, 2014

Common Financial Language

In March 2012, Andrew Haldane and collaborators pitched for 'common financial language' and there is a response from SWIFT (written by M.Chisholm and A.Milne) in September 2013, where they explain the difficulties involved. In an April  2014 conference "Alistair Milne, professor of financial economics at Loughborough University, said that creating a single common financial language is not a realistic proposition as the industry does not perceive it to be a priority. “It is the deal that matters, as this is where the profits are made. […] The back-book becomes a secondary issue” said Professor Milne."  A recent report from The Scotsman "Alistair Milne, professor of financial economics at Loughborough University, found even apparently simple terms such as “arrears” or “loan performance” can have different meanings within the same organisation."
P.S. Andrew Haldane seems to be one of those rare species, a good banker. More about him by Justin Fox The regulator who explained the world which also has some links to the above topic.