Several banks are deemphasising high-profile but risky capital market business that benefited employees more than shareholders and society as a whole. The modified business models should ultimately result in a more resilient and diversified sector with a more sustainable risk-return profile. Further changes to banks’ business models will be brought about by structural measures.
More capital and fewer NPLs is a prudent and sound policy for banks but if, absurdly, capital requirements were raised to 100 per cent of total assets and NPLs reduced to zero, both stocks and new flows, supervisors would be 100 per cent safe, but the banking business would cease to 8  exist, at least in the form we have known for centuries.