The banking and capital markets sector is being transformed by increased competition, regulation and globalisation.
Investment banking is bouncing back strongly as acquisition activity gathers momentum. While still highly profitable, the outlook for retail banking appears to be clouded by concerns over consumer debt and the slow down of economic growth.
The impetus for further consolidation is growing as a result of margin pressures on the one hand and — thanks to soaring profits and steadily rising share values — the surge in available capital on the other. The outlook for the banking & capital markets sector is also being shaped by regulation including the move to Basel II. These challenges have heightened the importance of effective risk management in delivering stable returns and supporting robust governance and compliance processes.