Greater regulatory scrutiny in Europe is compelling banks to better understand their data and consider tough strategic decisions. 

Key legislation on the structural reform of banks held over from the previous European Parliament and European Commission may now take a back seat.

Low volatility and low yields are making life tricky for structured product providers. But by broadening their range of products and by doing more to tap upcoming markets, such as Asia, they have been able to ensure they get plenty of business. 

New regulations are having a profound impact on structured finance and securitisation markets. But the bigger banks are mostly coping, with some even exploiting the situation to build their investor-advisory services.

Index-based structured products have grown in popularity since the financial crisis, as investors have sought flexible and bespoke ways to gain exposure to certain assets. And while the threat of tougher regulation looms, bankers are confident it will not slow down the market. 

Caught up in European regulation, Germany’s public banks are trying to adapt to new challenges. Across all three banking pillars in the country, financial institutions are particularly struggling with increased competition in retail banking and low profitability.