He's banking on cost declines (that silicon shortage should ease next year) and increases in costs of the fossil fuel juice he's competing with.
For now Moynihan is clearly banking on cost-saving measures associated with mass layoffs to help convince stock market investors that Bank of America is headed in the right direction and can deal with the current low-interest rate environment, mortgage-related legacy issues and new international banking capital requirements that Moynihan said were the biggest challenges facing his bank.
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The end of low-cost banking could be the dawn of smarter banking.
The lesson of history is that early, decisive government action can stem the pain and cost of banking crises.
That could cost the banking industry tens of billions of dollars.
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Properly measured, the penalty attached to Barclays' investment-banking strategy should also include the opportunity cost of failing to invest its capital in more profitable businesses, such as retail banking.
He split the cost with a banking partner and secured a lucrative management contract for Morgans.
The rise in the cost of traditional banking is one reason some consumers ended their relationship with banks.
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But the simple, low-cost mobile-banking systems that operate in countries such as Kenya, India or Brazil suggest otherwise.
He said the fast-growing and not-for-profit community bank provided a "much-needed affordable alternative" to high-cost lenders and mainstream banking.
To put this another way, will the cost of rehabilitating its banking system be greater than Spanish taxpayers can afford?
Far better, anyway, than cost-intensive domestic banking in Germany, which the bank has spent a year trying to marry with other distribution channels.
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There are some risks so large it makes sense for society to underwrite them, rather than push the cost on to the banking system.
But in 2006, in what one of their chief executives describes as a stroke of genius, they hit upon the idea of creating internet accounts to attract foreign deposits, using the cost savings from online banking to offer higher interest rates to savers.
Over time, excessive capital levels will increase the cost of capital to the banking industry and decrease lending.
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If the banking system is completely paralyzed then the cost of capital de facto increases an infinite amount.
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The IMF said the money raised should be channelled into a special fund that could be used to pay for the cost of cleaning up future banking crises.
Of its 10.2% deficit in 2012, 3.2 percentage points was due to the cost of cleaning up its banking system, which has been decimated by loans made to property developers and speculators during the last decade's housing bubble that have since proved unrepayable.
Nothing better symbolises the difficulties of achieving a single market than a recent argument between the European Commission and Parliament on the one hand and Europe's banking industry on the other over the cost of sending a small credit across a national border.
But they are banking on the same sorts of improvements: cost savings from merging trading systems, better distribution networks and so on.
With few exceptions, banks have found that new revenue streams or channel cost reductions from first generation mobile banking solutions to be largely elusive.
Sir Mervyn, also speaking at Mansion House, said the eurozone debt crisis had pushed up funding costs in the banking sector, which in turn meant the cost of borrowing for businesses and individuals had risen.
But as we still count the cost of the 2007-8 banking crisis, there is something much more important at stake - which is whether governments and regulators have made a fundamental error in the way they reacted to that crisis.
In December, Prince unveiled a cost-cutting plan led by investment banking head Robert Druskin.
Americans seem unconcerned by European sovereign debt problems and the cost of the crisis to the European banking community, like the leading German, Spanish, French and British banks, who have trillions on the line to the sovereign debtors.
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The Teutonic taxpayer is much much more concerned about the vast potential cost of bailing out the entire Spanish banking sector than the relatively piffling sums involved in the argument between a real terms freeze and a 5% rise in the EU budget.
House lawmakers this week plan to introduce legislation that would designate fewer loans as high-cost, and a key Democrat on the Senate Banking Committee, Sen.
This is largely presented as a tactic to stimulate the domestic economy by lowering the cost of finance and putting more money into the banking system.
Closing branches while laying the blame for doing so elsewhere is something many a French bank would love to do, but cost-cutting in France's overcrowded retail-banking industry has been hampered by political opposition to job losses.
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