Third, many banks still have high costs, partly because of their large branch networks. But how large do these networks actually need to be in this age of digital banking? Fourth, some banks are still weighed down by impaired balance sheets. They need to get rid of legacy assets such as non-performing loans. Fifth, some banks could improve the way they handle risks.
They need to establish a strong risk culture, set up adequate risk governance and integrate it into their overall structure. And finally, all banks have to adapt to more stringent rules. It is true that they come at a cost, but in the long run, their benefits are greater. Society benefits in any case, but so do the banks.