Headline: Squeezing the bank balance sheet from both sides Source: Euromoney Date: September 2000 Author: Michael Peterson more on Bonds more on Banking Ever on the look-out for new and lucrative corners of the capital markets, many firms have identified what is often called capital management as a promising niche. At its most respectable, this business consists of advising banks and other companies on how to measure and manage the true economic risks of their activities. More often than not, however, it is about cold-calling bank treasurers and trying to sell them ideas for complex deals. Michael Peterson reports Lately, European bank treasurers have been receiving a lot of suggestions for deals designed to improve their return on capital. They should be receptive to these ideas – even if they balk at the fees being asked – because they are under growing pressure to improve return on equity.Of course, banks can do this by cutting costs or improving their lending practices, but a bit of financial jiggery-pokery helps as well. |