BNP Paribas has said that it is to shrink the riskiest part of its investment bank and cut costs in the face of tougher regulation. It will reduce its exposure to fixed income while focusing more on fee-generating businesses that use less capital, such as securities services and cash management. REUTERS/ The move comes after a series of scandals involving traders at Barclays, including one trader who was jailed for rigging benchmark interest rates. Europe's biggest banks have come under pressure to shrink capital intensive parts of their businesses and focus more on the most profitable areas.
BNP Paribas has said that it is to shrink the riskiest part of its investment bank and cut costs in the face of tougher regulation. It will reduce its exposure to fixed income while focusing more on fee-generating businesses that use less capital, such as securities services and cash management. The move comes after a series of scandals involving traders at Barclays, including one trader who was jailed for rigging benchmark interest rates. Europe's biggest banks have come under pressure to shrink capital intensive parts of their businesses and focus more on the most profitable areas.