3. An Approach to Bank Restructuring

In this chapter, an overall, comprehensive approach (the RTX2) to drive the “bankaround” challenge is presented, covering four fundamental phases (mostly complementary, and partially substitute). The restructuring phase—split into financial and industrial—is discussed as it applies to the initial phased of the banking crisis, when the bank is just trying to survive till next Monday, and then over a horizon stretching to few months. It follows (if successful) a turnaround phase, now addressing the business and operating model at a more structural level, and then (again, if successful) a full transformation one, potentially spanning across few years and leading to significant and definite change in the way the bank works and competes in its core markets. In case of failure, or even in case of success and as a complementary measure to be adopted for not viable businesses, the resolution phase—and its last resort liquidation procedure—is finally described at high level.