What is the main goal of compliance in banking?

The main goal of compliance in banking is to ensure that the bank adheres to regulations and laws. Compliance serves as a vital safeguard, helping financial institutions navigate the complex landscape of legal requirements imposed by various authorities. By adhering to these regulations, banks help to maintain the integrity and stability of the financial system, protect consumer interests, and avoid legal penalties or reputational damage. This commitment to regulatory frameworks fosters trust with clients and stakeholders, ensuring that operations align with both the letter and spirit of the law.

While other aspects such as managing customer complaints and promoting new banking products are important business functions, they do not capture the overarching purpose of compliance. Maximizing profits is ultimately a business objective that runs parallel to compliance but does not define it. Therefore, ensuring adherence to regulations and laws remains the fundamental focus of compliance within the banking sector.