McKinsey sees the ROE for the world's largest banks dropping from a recent average of  20% to 7%...

|By:, SA News Editor

McKinsey sees the ROE for the world's largest banks dropping from a recent average of  20% to 7% unless proposed capital and liquidity standards are mitigated. The BIS (from where the regulations originated) is a bit more optimistic, believing the figure will end up at 11-12%, but says bank investors must scale back profit expectations.