The Corporate & Investment banking, after the financial crisis it has contributed to create, has many new challenges to face to rebuild a new legitimacy.
The first challenge concerns the redesigning of the strategy of CIB players, whether they are pure players or within a global banking group: this “back to basics” approach includes a search of value added products and services, a client centric business reshaping and a better integration in the global range of services for their networks.
The second one relies on the risk approach and measurement, (market risks, counterparty risks, and a new vision of liquidity risk, which was far underestimated before the crisis). The governance of these functions has to be improved as well as the global set of KRIs, preventing new undetected exposure. The new capital requirements, set by the Regulators, will push also banks to a greater agility in capital allocation and risk/return approach in a less leveraged environment.
Last but not least, the new resource management and rewards schemes have to be adapted to this new environment, as being part of the competition between actors and financial places.
At EUROGROUP CONSULTING, our practice model gives us a sound understanding of these issues as well as a direct comparison of discrepancies between actors or countries. A large part of our assignment for global players gives us also a deep understanding on the way to handle theses changes on a worldwide approach.
