Investment banks layoff an opportunity for regional banks

Last week one of my colleagues visited the Hong Kong trading desk of an European investment bank.  She visits them quite frequently on support visits in the past and has befriended with many of the traders on the floor.  That is why she was in a bit shocked to see half of the trading desk emptied on her last week’s visit.

The investment banking land in Hong Kong, much like the rest of the world, is experiencing an earthquake right now.  But while the large investment banks scaling back, the regional banks are seeing an opportunity for them to play a bigger role in the market, and this round of layoffs has produced a pool of talents that can help put in place the proper procedures and infrastructure.

Some of the regional banks I’ve visited have said that they do have plan to expand and many of them have added a few former IB’ers to help with the expansion.  The key now is for the senior management and the board members of these regional banks to have the courage to take action on their ambition and follow through to the next steps.