These changes to business models and operational efficiency are likely to bring about further cuts in the sector. We have seen this trend in Europe for some years now. Moreover, recent data and news releases on banks’ plans to cut resources and reshape strategies indicate that this trend is ongoing.
But a shift is now taking place. Over the next year, we are expecting a pick-up in household disposable income to provide a counterweight to the wealth effects of lower housing prices. Graph 9  11 / 13  BIS central bankers' speeches  1  Labour market outcomes are key to this assessment.