Since the 2008 financial crisis, banks have been laser-focused on capital efficiency. To meet regulatory standards, they are streamlining operations, divesting low-return assets, and shaving down risk exposures. Meanwhile, they've made one thing easy to overlook: capital deployment.
In an era defined by macroeconomic shifts, geopolitical tension, and the urgent demands of sustainability, simply ‘managing’ capital is no longer enough. The question isn’t whether a bank is compliant, but if it’s strategically investing capital to create value in a world that’s rapidly changing.
Today’s market calls for something more entrepreneurial. Where capital efficiency is about preservation, capital deployment is about positioning. It’s about enabling the first line of defense to seize opportunity, not just avoid penalties.
Capital that sits still is capital that loses. Banks should check if their teams are empowered to allocate capital toward the financing needs of the future, like green transitions or global trade realignments. The banks that win tomorrow will be the ones acting today. Not just as guardians of capital, but as architects of its impact.
Leading institutions are rethinking their long-term growth, resilience, and purpose. Discover how capital deployment is shaping the future of finance in our latest paper.
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