Tags: banking and capital markets

The future started yesterday. With bank revenues increasing again,
particularly in investment banking,there is a danger that the lessons learned in the stress environment created by the financial crisis will be forgotten and structural issues within
both the industry and individual institutions will be put to one side,only to resurface in the next crisis.PricewaterhouseCoopers1 analysis shows that structural failings within
operating models, whilst exposed by the financial crisis, were clearlyb visible pre-crisis. The balance between short-term maximisation of Return on Equity (RoE) and the
controls, processes and systems that should have created a focus
on sustainable profit was lost.In conceding this point we have
to accept that, regardless of changes to business strategy, the operating
models that deliver the strategy will
need to undergo structural change.

Operating in the future.pdf