European banks are under more pressure today than ever before. Returns on equity are at unsustainably low levels, even with artificially low interest rates and central bank support. Investor nervousness and the great “re-regulation” mean that funding and capital are more precious commodities than they have ever been. Management’s focus throughout the crisis has rightly been on the critical defensive actions, such as a wave of deleveraging.

However, sooner or later, management will need to turn their attention to developing a sustainably profitable business. Business models will need to be revisited and banks will need to become far more effective in gathering and deploying their financial resources. In this perspective, Adding 5% to ROE: How Banks Can Do More with Less, Oliver Wyman explains how financial resource management will become a defining capability of a successful future.