The banking industry worldwide is still reeling from the first truly global financial crisis. The unprecedented turmoil has highlighted the contagious speed with which losses and systemic instability can proliferate within an increasingly globalized and interdependent market economy.

Nearly, a year on after the collapse of Lehman Brothers, uncertainty over the full extent of the write-downs and prospects for the global economy continues to affect share prices and interbank lending. With many institutions facing a fundamental overhaul of their business model and underlying governance, regulation and risk management, the banking sector will never be the same again.

One clear trend is the renaissance of classic banking as unsustainable and over-leveraged structures giving way to simpler and more transparent forms of business. This includes moving away from an originate-to-distribute model towards a renewed focus on credit quality and relationship-driven banking. The ability to build enduring relationships through customer service and understanding and the ability to adapt to tougher regulatory controls will be key competitive differentiators in this environment.

The Analyst Magazine, Global Financial Crisis, Global Banking Market, Global Economy, Industrial and Commercial Bank of China, ICBC, Global Economic Axis, Bank for International Settlements, BIS, Global Footprint, Emerging Markets, Regulatory Control, Credit Control Capabilities.