Interesting Article by KPMG Expert

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Back to basics: Reevaluating business models in retail banking -
Interesting Article by KPMG Expert

THE call for retail banking to get back to basics has rapidly become a
cliché. But like all clichés, it captures a real truth.
The financial crisis has exposed the dangers of combining investment
in opaque and highly complex structured products with retail deposit-
taking. One way or another, retail banking should reengage with its
original core purpose: collecting deposits from savers and lending to
enterprise, financing the real economy. No doubt, a role will remain
for esoteric and relatively high-risk financial speculation;
structured products and derivatives will continue to play their part
in spreading and transferring risk. But these forms of business should
be increasingly segregated from reliance on retail- banking balance
sheets.

More is available at
http://businessmirror.com.ph/home/banking-a-finance/17393-back-to-basics-reevaluating-business-models-in-retail-banking.html