Regulations such as the ban on proprietary trading in the US and taken to Britain separation of retail units, so that their assets are protected in upheaval with other business groups also affected more strongly by major banks. This applies to rules for international activity - more regulators require foreign subsidiaries units to maintain sufficient equity capital to cope with potential shocks. As a result of all this, though not particularly shrunk its size, the 11 largest banks at least have stopped growing pre-crisis pace - in 1990 the top 10 institutions in the world have assets of nearly 3.6 trillion. dollars, or 6.6 trillion. dollars at today's prices, which equaled 16% of global GDP. By 2008, their assets are already 25 trillion. dollars, or 40 percent of global GDP, while today the number is 26 trillion. dollars, or 35 percent of global GDP.
Overall institutions turn their backs on riskier and kapitalovointenzivni operations such as trading financial instruments on behalf of safer activities such as helping businesses to find capital and managing funds for wealthy investors.
Some cases are much more radical - once a world leader in terms of total assets, Royal Bank of Scotland has shrunk by half since the British government is the majority shareholder, Deutsche Bank sold its large German retail unit Postbank. Although this can be done much more, says Economist. Many large banks are currently traded below their book value, suggesting that separation of parts would increase their price.
The importance of size
According to the manager of JPMorgan Chase Jamie Dimon, however, the preservation of all businesses under common hat bears the institution's annual synergies of 18 bln. Dollars. Large institutions can be financed and cheaper, partly due to their high diversification, but also because investors are more willing to lend to the assumption that the problems they will be saved.