[throw0101a]

> However, this lowers the appeal for new entrants to enter these markets to compete for these excess profits through better and more efficient products and services.

And how many de novo banks have there actually been in any country recently? In the US, the land of plenty (banks), there's been one in the last twenty years.

Bloomberg's Odd Lots podcast just had an episode on this (including the topic of de novo):

* https://www.youtube.com/watch?v=8lPFHWgxq5c

Banking is low margin, and it takes decades to get any kind of return: few, if any folks, have the patience for that kind of ROI when there are alternatives.

[ABCLAW]

Retail banking is low margin high volume, but a bank's CMG or IB divisions are NOT low margin operations. Trading desk margins vary depending on the strength of the group and the clientele. If you're a primary desk for a trillion dollar AUM entity, you make a very pretty penny off your Bloomberg terminal subscription.