The Importance of Chinese Walls in Banks and Management of Information Flows

Abstract

When conflicts of interest, period fraud, and insider trading occur in the banking industry, the stability and certainty of financial markets are undermined. The author has examined a wealth of documentation and evidence that the "Chinese Walls" plays an essential role in the management of the banking industry. However, the 'Chinese Walls' has been under constant threat of intrusion and exploitation in recent years, and the FCA has announced its abolition. The author argue that the Chinese Walls and information walls cannot be eliminated and remain helpful in the right circumstances. This paper proposes a solution that uses IFS management information technology and DLP in combination with the construction of appropriate situational and physical barriers for better information management and protection.