Managing non-core assets
Critical success factors
In response to regulatory, economic and market uncertainty, banks have embarked on a journey to restructure and resize their balance sheets. As we know from recent experience, as well as prior financial crises across the world, there are many different structures and methodologies that a bank can use to manage down its non-core assets.
In our publication, we have identified five critical success factors based on interviews with senior practitioners from Deloitte member firms. Drawing on their experience in working with banks on managing non-core assets, they have provided insights into what has worked and where problems arise.
To be successful, banks need to:
- Define clear strategic and financial objectives to strengthen leadership and enhance communication with stakeholders.
- Identify non-core assets carefully to avoid operational issues and damaging client relationships and brand.
- Select the appropriate structure to house the non-core assets.
- Develop a flexible asset wind down plan that can take advantage of changing market conditions.
- Ensure they do not underestimate operational implications for what is essentially a complex project where operating plans need to be commensurate with the non-core asset wind down.
Managing non-core assets (PDF)