Market reforms and global economic uncertainties present banks with a unique set of challenges.
The immediate turbulence of the financial crisis may have abated and many banks are now in a position to reshape and revitalise their operations with a renewed sense of confidence, but significant challenges remain. Regulatory reform continues to consume huge amounts of resource and management time as banks get to grips with the detail of how best to comply with a vast array of new rules. Whilst much of the overarching legislative structure coming out of the financial crisis has now been put in place, many implementing measures are yet to be completed and some of the new rules that have been finalised are complex or even divergent across the jurisdictions. In the meantime, the pressure from regulators and supervisors remains intense. Enforcement activity continues apace, banks’ conduct and control mechanisms are under the magnifying glass as never before and regulators have displayed a thirst for high quality data as they ramp up the requirements of their stress tests.
In the meantime banks are having to make vital commercial decisions about the markets in which they operate, based not only on the regulatory outfall of recent years. Factors as diverse as cyber security and the rising importance of non-bank competitors sit alongside those such as the costs of increased capital requirements or new rules governing proprietary trading as banks strive to counter threats and capitalise on opportunities.
We advise banks across the world and in relation to every aspect of their business. We bring pragmatic, commercial advice and unrivalled insight to some of the world’s most demanding and innovative bank projects. Our bank clients are core to our business.
With balanced strength in our corporate, finance, regulatory and other specialist divisions, we can bring together integrated teams across all the key jurisdictions and business lines in which our clients operate, advising banks not only on their own operations but also on the work that they do for their clients. Whether it be M&A, capital markets activity or negotiating the post-crisis regulatory reform agenda, our expertise is broad and deep and covers the full range of a bank’s business, from complex strategic activity to day-to-day transactional matters. We advise on everything from the EU bonus cap, antitrust issues or the issue of innovative capital instruments, to helping banks assess how best to separate out or ring-fence elements of their business. It is this experience which we can bring to bear in helping clients adapt to the exceptional rate of regulatory and market change and favourably position themselves in the financial markets of the future.
For further assistance please contact a member of Linklaters’ global bank sector team: Christa Band, Anne Drummond, Matthew Middleditch, Jeff Norton, Andreas Steck, Tom Wells or Carson Welsh.
You can find out more about Linklaters’ bank sector experience and capabilities from sector manager Chris Edwards on (44 20) 7456 2625.