Magazine article American Banker

Advise to Banks: To Cope with Change, Be Nimble

Magazine article American Banker

Advise to Banks: To Cope with Change, Be Nimble

Article excerpt

Philadelphia--Large and small banks have become adept of coping with change and--if they continue to be as agile and flexible as they have been -- they will survive and make money in the fast-changing, global, free-enter-prise world of financial institutions.

That was the message at the annual convention of the National Association of Bank Women Tuesday from a banker in the forefront of change and from an investment banker who used to be a regulator.

John Heimann, vice chairman of Merrill Lynch Capital Markets, New York, foresaw the emergence of "world class" international financial institutions doing business alongside smaller, national institutions, niche specialists, and discounters. Mr. Heimann is a former U.S. comptroller of the currency.

Institutions whose top managements are incapable of dealing with change will increasingly disappear under the pressure of stepped-up competition, he said.

The survivors, according to Anthony P. Terracciano, vice chairman of Chase Manhattan Bank, New York, will profit by providing value-added, technology-based services and products built on a "rich client base" and served up by managers who are better trained, increasingly opportunistic, and who are experienced in many aspects of the banking business.

In addition to competition from traditional commercial investment banks, Mr. Terracciano said, he "keeps an eye on information companies like AT&T and IBM.... In worry [about them]," the Chase vice chairman added, "but not too much."

Commercial bankers, Mr. Terracciano said, will have "to elbow their way" in new products and services like merger and acquisition deals and other kinds of investment banking.

Some clients, he told the women bankers, continue to believe that commercial banks really ought to behave like commercial banks, and investment banks behave like investment banks. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.