2019BankingandCapitalMarketsOutlookReimaginingtransformation2019BankingandCapitalMarketsOutlook:Reimaginingtransformation2Brochure/reporttitlegoeshere|Sectiontitlegoeshere02TableofcontentsCalmerwaters:Adecadeafterthefinancialcrisis,thebankingindustryisonfirmerground1Regulation:Aneweraofglobalregulatorydivergence5Technology:Creatingasymphonicenterprise8Risk:Strengtheningthecorewithnew-agedefenses11Retailbanking:Thedigitalleadershiprace13Corporatebanking:Digitizationandanewcreditdiscipline16Transactionbanking:Modernizingoperationswithafocus18onimprovingtheclientexperienceInvestmentbanking:Newclientengagementmodels19andecosystemorchestrationPayments:Theimperativetodiversifygrowth,22bolstersecurity,andrestructuretheorganizationWealthmanagement:Balancingbusinessgrowth24withproductrationalizationandtransparencyMarketinfrastructure:Harnessingthepowerofdata26andtechnologiestodriveacompetitivegrowthagenda2019BankingandCapitalMarketsOutlook:Reimaginingtransformation1CalmerwatersAdecadeafterthefinancialcrisis,thebankingindustryisonfirmergroundTheglobalbankingsystemisnotonlybiggerandmoreprofitablebutalsomoreresilientthanatanytimeinthelast10years(figure1).AccordingtoTheBanker’sTop1000WorldBanksRankingfor2018,totalassetsreached$124trillion,whilereturnonassets(ROA)stoodat0.9percent.Similarly,tier1capitalratioasaproportionofassetsroseto6.7percent,significantlyhigherthanin2008.1Buttherecoverysincethefinancialcrisishasnotbeenuniformacrossregions.USbanks,comparedtotheirEuropeancounterparts,areaheadonmultiplemeasures.AggressivepolicyinterventionsandforcefulregulationshelpedpropelUSbankstohealthmorequickly.Andmorerecently,favorableGDPgrowth,taxcuts,andrisingrateshavefurtherbolsteredthestateoftheindustry.TotalassetsintheUnitedStatesreachedapeakof$17.5trillion.2Capitallevelsareupaswell,withaveragetier1capitalratiostandingat13.14percent.Returnonequity(ROE)fortheindustryisatapost-crisishighof11.83percent.3Efficiencyratiosalsoareattheirbest.Similarly,onothermetrics,suchasnonperformingloa...
