Banks Fret Over Prospects
6. Crumbling Margins
Nearly all banks are fretting over consistently low, and in Switzerland negative, interest rates – only one of 100 respondents said it wasn't a worry. The biggest element of worry for two-thirds of them is that a decade of expansive policy by central bankers has wiped out a traditional pillar of banks' revenue: interest income.
7. Lower Value – Lower Returns
Many bankers view the future of Switzerland's financial sector darkly. Sixty-three percent believe that the value created by domestic banks will be lower than it is today. Ironically, 80 percent are convinced they can expand their own business – a believe that apparently doesn't extend to their rivals.
An overwhelming majority of 70 percent believes that bank shareholders will have to learn to love lower returns as a result of collapsing margins.
