Banking review: Seeing beyond 2011
Getting the balance back
It is somewhat axiomatic to observe that the banking industry locally and globally is undergoing a period of great change. The expectation for SA banks is a continued period of low returns with a focus on cost reduction and meeting the ongoing requirements for new and ever more rigorous regulatory change. We believe that the current business climate in South Africa, though still tough, is also showing signs of recovery. So whilst we should not expect miracles and growth for local banks this year might not be at the levels seen prior to the economic crisis, Deloitte is of the view that 2011 is a year for banks to regain balance. They certainly cannot go into hibernation until the difficult times are over, nor can they afford to allow the current environment to force them into an overly internal focus.