Oliver Wyman – The New Monetary Order

Oliver Wyman has released a report examining the state of the global financial services sector after the recent financial crisis and the changes that have taken place. The report highlights the impact of prolonged low interest rates and expansive central bank balance sheets, as well as regulatory reforms, on the financial system. These changes have influenced liquidity, capital levels, interest rate risk, and the growth of credit in the system. The report also emphasizes the evolving roles of competitors in the industry, such as the growth of non-bank financial institutions and the rise of regional and domestic banks. Looking ahead, the report suggests that the era of "Low for Long" - characterized by low interest rates and ample liquidity - is coming to an end. This paradigm shift will likely shape the financial system in the coming years. The report aims to explore various scenarios and assess the industry's readiness to manage through these changes. It promises to analyze different regions and segments in a series of papers before providing global perspectives. The report concludes by sharing the US Perspectives paper on the New Monetary Order and encourages readers to engage with the research.