The world of Corporate Investment Banking (CIB) has been the financial services sector most affected by the 2008 crisis.
Jacques de Larosière’s report on the unprecedented crisis criticized in particular the negligence of liquidity management on markets, the weakness of models, the problems of methodology in bank rating systems, but above all the lack of governance in banks. In response regulatory requirements have grown, targeting specific weaknesses, and the regulator has increased the pressure on banks in terms of capital requirements and the management of short and medium-term liquidity.
As a consequence, all of the major banking groups in France, for example, have, therefore, considerably deleveraged their balance sheets. This has, above all, affected Corporate Investment Banking, which is faced with many new challenges: new regulations to protects savers (Volcker Rule); new qualitative and quantitative requirements in terms of capital; higher financing costs; an overhaul of portfolio activities and improved risk management.