Banks unlikely to find reprieve in 2016

摘要

Regulators are expected to continue to ratchet up pressure on the biggest global banks in 2016, according to analysts, who predict that institutions will need to respond with further restructuring to wring out costs and meet return targets under the tougher rules. With most of the 2010 era financial reform rules written, analysts expect the US Federal Reserve and others will now begin to pull levers on the regulatory machine they have spent the last few years building to force the largest banks to shrink. "We expect the regulatory environment to toughen for the largest banks, and bank managements will have to come to grips with tougher capital requirements," said Brian Kleinhanzl, an analyst at Keefe Bruyette & Woods.