Banks glean efficiency tips from industry
News from Financial Times:

When the financial crisis plunged investment banks globally into big losses that threatened the existence of some, they set out to drastically reduce their often overblown cost structures.

But several years and tens of thousands of staff cuts later, the sector is back to square one.

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Investment banks’ average cost-income ratio – a key measure of efficiency – has ballooned to 80 per cent last year from 60 per cent in 2007, according to data by Morgan Stanley and Oliver Wyman.

It comes after tighter regulatory capital requirements, lower leverage and falling revenues have eaten into returns while costs for back-office functions such as risk management and information technology have been stubbornly on the rise.

Fixed salaries have also increased by 37 per cent over four years, according…………… continues on Financial Times

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