RPT-UPDATE 2-HSBC warns of growing risk aversion as profit drops
* Heavy agenda of reforms risks overburdening staff, operations
* "Creeping concern" of zero tolerance for risk-taking -chairman
* H1 profits drop 12 pct after fall in revenues
* HSBC set to benefit from higher interest rates
* Shares up 2.5 pct (Repeats to additional subscribers)
By Steve Slater and Matt Scuffham
LONDON, Aug 4 (Reuters) - Europe's largest bank HSBC warned that regulators' zeal to punish wrongdoing was putting its staff off taking reasonable business risks, as it reported a 12 percent drop in first-half profit.
HSBC Chairman Douglas Flint on Monday called on international regulators to clarify what they expected of bank staff after recent record sanctions for misconduct, including a $9 billion U.S. fine against France's BNP Paribas, had left them fearful of retribution.
"There's a creeping concern that staff are clearly very focused on the penalties for getting things wrong and are building risk-aversion into the way they think," Flint told reporters on a conference call. Continuación...