In this scenario, banking business becomes fragmented and the value chain is broken up. Universal banks are history, regardless of whether they are “old” or “new”. Instead, a large number of specialised providers emerge, offering individual financial services.
But it was also the same difficulties that allowed us to confirm.. that our collective reform efforts have put our financial system in better shape. Indeed the irony of financial markets is that crises invariably occur despite the best intentions; yet, it is in facing the next challenge in relative strength that we can truly say we have learned from the past.