Van Steenis: Banks Can’t Cut Their Way to Greatness

The transcript discusses the impact of rising interest rates on U.S. banks, highlighting differences in performance based on business mix. It explores capital utilization, with a focus on Wells Fargo and Morgan Stanley. Strategies for Bank of America to improve include cost-cutting and leveraging technology. The challenges of mergers in large U.S. banks are examined, with a focus on growth areas like wealth management. Finally, the pressure on European banks and the need for consolidation in markets like Italy, Germany, and Austria are discussed.

What are the potential areas of growth for banks mentioned in the text?

Discuss the implications of the ECB's negative rate policy on European banks.

What are the structural issues affecting the banking sector in Italy, Germany, and Austria?