NU Online News Service, Dec. 11, 2003, 11:50 a.m. EST – Senior financial services executives expect to see significant restructuring in their industry over the next few years, according to results of a recent online survey conducted by PricewaterhouseCoopers L.L.P., New York.[@@]
The survey attracted participants from 123 financial institutions.
Almost 80% of the respondents said they expect to see big changes at their companies within the next 5 years.
When asked about the issue most likely to have an effect on their firms’ restructuring strategies, 64% of the respondents named regulatory capital requirements, and 51% said increasing compliance burdens and capital requirements will make their companies more likely to leave existing businesses.
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In Western Europe, 62% of the respondents said compliance requirements will make their companies more likely to leave existing businesses.
Nigel Vooght, a partner at PricewaterhouseCoopers, says the belief that compliance and capital requirements will force many big financial services companies to reshape their operations is widely held.