We strive to keep our markets pro-business and to keep operating costs competitive. Being cost-competitive is not sufficient by itself. We need to make sure that Singapore continues to stay at the confluence of business opportunities. To facilitate business reach into major markets, Singapore has signed a series of Free Trade Agreements with many of our trading partners include the US, India, Japan, Korea, Vietnam as well as beginning free trade discussions with China and the Gulf countries. I am certain these strong ties that Singapore has built can only facilitate Deutsche Bank's business expansions in this part of the world. BIS Review 15/2007  1  Conclusion On that note, let me again extend my heartiest congratulations to Deutsche Bank on its 35th Anniversary in Singapore. We appreciate your commitment to Singapore and hope that Singapore will continue to play an important role in your growth in Asia and the world. Thank you. 2  BIS Review 15/2007
Who would have thought that, four years later, we would be confronted with an even stronger franc and even lower – indeed negative – short and longterm interest rates? These extraordinary developments are ultimately a consequence of the global recession which hit the economy after the credit bubble on the US real estate market burst in 2007. As slide 1 shows, the banks around the world were, and continue to be, especially hard hit by this crisis and its consequences; since then, their share prices have performed significantly worse than those of other companies. This is principally due to the fact that many banks are still engaged in cleaning up their balance sheets and, where necessary, adopting costly restructuring measures. Furthermore, banks have been obliged to implement stricter regulatory requirements in the wake of the financial crisis. These requirements, which are needed to ensure systemic stability, are aimed at curbing excessive risk-taking. From the banks’ point of view, however, today there are lower potential returns in areas which were previously often lucrative but also highly risky. Banks are also faced with structural challenges. The accelerated pace of change in information technology and altered customer behaviour require high levels of investment. At the same time, the increasing digitalisation of distribution channels has stiffened competition, since it is easier for new rivals to enter the market. Another significant challenge for banks is the current economic environment. Weak global growth and persistently low interest rates in recent years are weighing on profitability in the banking sector.