The pandemic has accelerated existing digitalisation trends in banking, giving banks more justification for not only closing branches but also consolidating. Many European banks struggled over the past decade to meet capital requirements introduced after the financial crisis. Consolidation through mergers and acquisitions is well underway, with the blessings of governments and regulators that view it as a means to streamline the financial sector and strengthen its profitability and resilience.
Banca Monte dei Paschi di Siena
Throughout their long history, banks have sustained the smooth functioning of economies, but their effectiveness depends on the quality of their leadership. So, what makes a dependable chief executive or board member? The right attitude is a good start, as are applicable skills, foresight, ideas and a determination to cooperate with other key players. Now more than ever, strong and visionary leaders are the fuel that ignites profitable banking practice.
In recent weeks, the eyes of the financial world have been firmly fixed on Turkey, since its lira plunged in reaction to a doubling of trade tariffs by the United States.
Italy’s banking sector, mired in bad debt and low profitability, has been labelled Europe’s weakest, but fortunately it is making progress in addressing long-standing issues—with a little help from the government. Recent bank bailouts have given renewed hope to struggling lenders, while raising concerns that the arrangements conflict with Europe-wide rules prohibiting the use of taxpayer funds to bail out failing banks.