Since the financial crisis that started almost eight years ago to the day, there have been question marks over the future of banking behemoths with flags planted in almost every jurisdiction on the globe. The threat of a crippling $14-billion (about R196-billion) fine faced by Germany's biggest bank, Deutsche Bank, in the US and the share free fall that has dragged the stock to its lowest level in three decades may just be the answer. Their days seem numbered. The fine was subsequently reduced. The penalty fee is a case study for the changing banking environment, especially when it comes to operating in foreign jurisdictions. "Regulators have recognised that the larger banks may constitute a system risk and have imposed even higher capital burdens on them," said Patrice Rassou, head of equities at Sanlam Investments. The crisis facing the German bank may sound the death knell for the era of large international banks seeking expansion opportunities outside their domestic base, with t...
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