Bank clients see cross-sell pressure in swaps and clearing
European regulators are starting to look at competition in investment banking, with concern focusing on barriers to entry, bundling and concentration risks – issues banks claim have been aggravated by post-crisis reform. Catherine Contiguglia asks whether clients are getting a fair deal
A lot of investment banking businesses might not look competitive to outsiders – the number of providers is fairly small and in some cases is shrinking; loss-making units are allowed to wheeze along indefinitely if they help hook more profitable activity; barriers to entry are high, pricing can be opaque and customers are in some cases being asked to swallow significant hikes.
It's a picture that worries European regulators, which have launched a number of initiatives to test how robust
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