Corporate Banking Outlook

This Oliver Wyman report considers the prospects for corporate banking in the new post-crisis environment. We argue that the new regulatory burdens on both the core lending and derivatives businesses, combined with sluggish growth in Western economies, will exacerbate the weaknesses in the pre-crisis standard business model; namely, using corporate lending as a loss-leader for selling more lucrative structured or derivative products.

How should corporate banking strategists respond? As we explain, the answer depends on what sustainable advantages each bank can rely on, such as an attractive "footprint" (in thriving emerging markets, for example), a global brand and global capabilities, or exceptional product capabilities. Most banks will need to alter their current strategy and, with the aggregate economic profit shrinking, many will need to withdraw from some corporate banking markets, if not from all.


Lead Author
Matt Austen, Partner, EMEA Corporate & Institutional Banking Practice

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