Colin Henderson's Library tagged "bank strategy" →  View Popular, Search in Google

 

The Internet now faces a similar opportunity which, if not taken at its crest, may lead to the demise of the medium. This is most true, I think, of financial websites, which may, if they are not careful, assume the role of the cranky old uncle at the wake who sits in a chair in the corner and refuses to get drunk with the rest of the mourners.

Whether we are talking of investment banking or commercial banking, returns will undoubtedly be lower in future. The only question is how much lower. There is a possibility, if the politicians are in the mood for such a move, that the banking system might even revert to the role of a utility, which is the way things were before the great deregulatory tide began in the 1970s. Not a cheerful prospect for risk-hungry bankers.

Banks are now at a most critical time and their ability to innovate in sustainable business models will be key to their survival. Nouriel Roubini noted this morning that banks’ unsustainable “originate & distribute” business model of the last few years is crumbling with the broken “prioritization food chain”.