This is a presentation delivered in November 2010 as keynote in Spain. For more information, go to: http://thefinanser.co.uk/fsclub/2010/11/do-bankers-really-want-to-be-plumbers.html

1. Challenges for European banks in
a crisis and post-crisis environment
Chris Skinner
Chairman, the Financial Services Club
Commentator at www.TheFinanser.com

19. Capital buffer, leverage ratio
Financial
Sector
Burden
Sharing
[IMF[
June 2010
Reducing the
moral hazard
of systemically
important FSIs
[FSB]
October 2010
Prudential
Regulation
[BCBS]
End 2010
More and higher
quality capital
Mitigating
procyclicality
Risk coverage
Liquidity
Reducing
the
probability
and impact
of a SIFIs
failure
Improving
resolution
capacity
Reducing
contagion
risk
Systemic
levy
InternationalFinancial Transaction Tax
Contingent Capital
Windfall Tax
Capital/LiquidityInsuranceFee etc.
Recoupingexisting losses
Financingfor future crises
Firm specific
contingencyplans
Limiting the
complexity
Limiting the size
Limiting the
businessscope
Capital/liquiditysurcharge(BCBS)
Improvingthe quality and quantity of bank capital
Imposingmore capital requirementson trading and off B/S activities
Establishinglong-term and short-termliquidity standards
1 Narrow banking. Glass-Steagall approach (utility vs speculn)
2 Prohibition on certain activities and unregulatedbusinesses
3 Market share/sizeceilings
4 Simplified legal structure(subsidiaryvs branch issue)
5 Constraintson cross-borderoperations
1 Recoveryand resolution plans (living wills)
2 Crisis Management Group
Cross-borderresolution framework
Measureto strengthen core financial infrastructureand markets
(CCPs, Repository,Tri-repo, Payment and Settlement System)
Volker Rule
(USA)
1-3
Stability Fund
(Sweden)
Financial Crisis
Responsibility
Fee (USA)
Restrictions on
capital inflow
(Brazil/Taiwan)
Supertax
(UK/France)
Entity: SIFIs vs all FSIs
Tax Base: all liabilities / short-termliabilities /
non-deposit liabilities / wage bill
More efficient supervision through supervisorychange
}

22. Socially useful?
“Some of it
is socially
useless
activity”
Adair Turner

23. “For people to have
been selling products
which they neither
knew or understood –
or, worse, did know
and none the less did
sell – is a profoundly
moral issue.”
Ken Costa

24. “To restore trust and
confidence, we will
need to recognise the
moral dimension of
what has happened,
and to restore a proper
sense of values in our
corporate lives”
Stephen Green

25. “The financial sector
that is emerging from
the crisis is even more
riddled with moral
hazard than the one
that went into it.”
Martin Wolf

46. ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

48. Oyster Money Search Travel
Fast Fashion Tell Free Time
Settings Fast Food Entertainment Gifts

51. ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

54. The language of QQ
http://thechinaobserver.com/2008/12/an-introduction-to-virtual-currency-in-china/

61. 1.0 second (s)
0.01 (a hundredth) centisecond (cs)
0.001 (a thousandth) millisecond (ms)
0.000 001 (a millionth) microsecond (µs)
0.000 000 001 (a billionth) nanosecond (ns)
0.000 000 000 001 (a trillionth) picosecond (ps)
0.000 000 000 000 001 femtosecond (fs)
0.000 000 000 000 000 001 attosecond (as)
0.000 000 000 000 000 000 001 zeptosecond (zs)
0.000 000 000 000 000 000 000 001 yoctosecond
(ys)
How fast do you go?

69. ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

74. 74
C:UsersChrisDocumentsA_Conferences2010_06, AFI SantanderBBVA
A “customer centric”distribution model

75. http://thefinanser.co.uk/fsclub/2008/07/bbva-the-
first.html

76. http://thefinanser.co.uk/fsclub/2009/06/a-spanish-first-social-banking.html

77. A bank that operates as a
mobile network and bank
Operador Móvil Virtual

80. Gorilla Gorilla
Gorilla Gorilla
Balance Sheet
Weak Strong
Bank Size
Small
Large
Banks

81. Gorilla Gorilla
Gorilla Gorilla
Balance Sheet
Weak Strong
Bank Size
Small
Large
Competition
“regain trust” “acquire”
“camouflage”“avoidance”

82. Gorilla Gorilla
Gorilla Gorilla
Balance Sheet
Weak Strong
Bank Size
Small
Large
Customer
“retention” “acquisition”
“advocacy”“loyalty”
Weak Strong
Small
Large

83. Gorilla Gorilla
Nothing Gorilla
Balance Sheet
Weak Strong
Bank Size
Small
Large
Technology
“status quo” “real-time”
“innovation”“outsource”
Weak Strong
Small
Large

84. Further reading:
• “Can banks be trusted?”
• http://thefinanser.co.uk/fsclub/2010/11/can-banks-be-trusted.html
• “Are bankers good or bad for society?”
• http://thefinanser.co.uk/fsclub/2009/11/are-bankers-good-or-bad-for-society-part-one.html
• “Branches are dead, the future is social”
• http://thefinanser.co.uk/fsclub/2010/04/branches-are-dead-the-future-is-social-part-two.html
• “The Long Blog about the Long Now”
• http://thefinanser.co.uk/fsclub/2010/11/the-long-blog-about-the-long-now.html
• “Battleground 2010: Sharks vs Gorillas”
http://www.thefinanser.co.uk/fsclub/2010/01/battleground-2010-sharks-versus-gorillas.html
And much more at www.TheFinanser.com, as well as our
books: http://thefinanser.co.uk/fsclub/books/

85. Challenges for European banks in
a crisis and post-crisis environment
Chris Skinner
Chairman, the Financial Services Club
Commentator at www.TheFinanser.com