Banks must invest in long term risk management

US - Federal Reserve Vice Chairman Roger Ferguson said Monday that banks must devote attention and resources to financial risks, despite the upfront costs of such efforts.

In a speech at Washington and Lee College in Lexington, Va., Ferguson urged the financial industry to make full use of new technologies and international banking standards, rather than shy away from their expense. Proper internal controls are an essential part of bank management, even as banks seek to boost their profits.