The day after tomorrowA PwC perspective on the global financial crisis
www.pwc.com/ro
Paul FacerPartner, Assurance Services
PwC
The seven themes have a complicated set of political, economic and social interactions
2
Global power
shift to East
Government inside
the tent
Unprecedentedfiscal pressure
Capital, credit and
liquidity vacuum
Nouveau Classicbanking model
Pursuit of“zero risk” regulation
From survival mode
to sustainable strategy
Need for government
support
Capitalflows
Ownership/ controlGlobal
recessionLower risks, lower returns
Strategic reactionto crisis by banks
Government sells banking stakes in
medium term
Highertaxes
Cost ofbail-outs
Crisis easeseventually
FIs adjust business models
Greater cooperation between international
regulators
Regulatory reactionto crisis
Fiscalarbitrage
15 November 2010The Day after Tomorrow
PwC
Three key things to remember:
The Day after Tomorrow3
15 November 2010
A new world for FIs
• Be prepared to make tough decisions in reshaping the business model and cost base in the face of increasingly scarce financial resources
• Embrace all possible scenarios including those previously considered unthinkable
• Because of significant changes in who winners or losers may be, it is not enough to merely survive – anticipate and exploit opportunities in the new world
Survive
Adapt
Win
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