As we emerge from recession, banks continue to seek to repair their damaged balance sheets by increasing their income from relationships. Banks are increasingly seeking to increase the income that they earn from relationships as their costs of conducting business have increased as regulators demand increased capital adequacy requirements. We are now regularly seeing banks seek more ancillary business from clients. This can over time see banks become comfortable that they have less competition from other relationship banks and increase pricing.
Our experience is that it remains a highly competitive market and there is often much to be gained from reviewing the income that banks are able to earn from relationships. In many cases the last few years has seen a creeping process of increased charges, margins and fees alongside reduced rates for any credit balances. We are helping increasing numbers of clients tackle this situation and negotiate significantly improved terms across their bank relationships.