Heard of the 80/20 ratio? If you are a second- or third-tier universal bank in Europe, you may well have. Without a change in strategic thinking, many of these banks face a challenging future, according to a report from consultancy firm Oliver, Wyman & Co.
The ratio in question is the amount of capital stumped up by providers of corporate loans in Europe, versus the amount of investment banking fees won by the banks from the companies they lend to. Oliver, Wyman calculates in the report