International Banking Strategy: The Quest for El Dorado?

The financial crisis and its aftermath have created a clear trend towards the re-localization of banking activities. Many pre-crisis global banking powerhouses have disposed of international assets to satisfy higher capital requirements, respond to increasing regulatory complexity, or simply focus management attention on restoring profitability in their core domestic franchises.

But despite these headwinds, international strategy is back on the agenda in many bank boardrooms as stronger players seek to take advantage of their relative position by expanding internationally and banks in low-growth markets seek to lay the foundations for future earnings streams.

In a new report Oliver Wyman highlights attractive markets based on both economic fundamentals and structural considerations, and describes how to develop an institution-specific framework that leverages differentiated capabilities while both respecting and managing the constraints that exist in the post-financial crisis world.