The day after tomorrowA PwC perspective on the global financial crisis

www.pwc.com/ro

Paul FacerPartner, Assurance Services

PwC

The seven themes have a complicated set of political, economic and social interactions

2

Global power

shift to East

Government inside

the tent

Unprecedentedfiscal pressure

Capital, credit and

liquidity vacuum

Nouveau Classicbanking model

Pursuit of“zero risk” regulation

From survival mode

to sustainable strategy

Need for government

support

Capitalflows

Ownership/ controlGlobal

recessionLower risks, lower returns

Strategic reactionto crisis by banks

Government sells banking stakes in

medium term

Highertaxes

Cost ofbail-outs

Crisis easeseventually

FIs adjust business models

Greater cooperation between international

regulators

Regulatory reactionto crisis

Fiscalarbitrage

15 November 2010The Day after Tomorrow

PwC

Three key things to remember:

The Day after Tomorrow3

15 November 2010

A new world for FIs

• Be prepared to make tough decisions in reshaping the business model and cost base in the face of increasingly scarce financial resources

• Embrace all possible scenarios including those previously considered unthinkable

• Because of significant changes in who winners or losers may be, it is not enough to merely survive – anticipate and exploit opportunities in the new world

Survive

Adapt

Win

Thank you!

© 2010 PricewaterhouseCoopers .All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Romania which i s a member firm of PricewaterhouseCoopers Internati onal Limited, each member firm of which is a separate legal enti ty.