In our recent point-of-view, "American Banking: Facing the Growth Challenge", we explore the supply, demand and regulatory headwinds that we expect will constrain asset growth for banks, despite the evidence of post-crisis earnings recovery.
While there is a healthy difference of opinion among both analysts and practitioners with respect to industry growth outlook for the next five to ten years, it is certain that rising rates, continued deleveraging and increased regulation will present asset growth hurdles for banks not seen in the past three decades. Against these headwinds, we believe a strong focus on operational excellence, capacity rationalization, and M&A will drive the emergence of the next set of winners in the industry.
