Recent trading losses at Daiwa Bank Ltd., on top of other, similar incidents at Barings PLC and Chemical Banking Corp., means banks need to intensify internal controls, particularly over trading risks, bankers and analysts said.

"What this shows is that even at the most sophisticated institutions in the world there is a tremendous lack of basic controls," said Andre Cappon, president of CBM Group, a New York-based financial consulting firm.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.