Credit crunch explained: future of banking after the sub-prime crisis and global markets crash. Impact on banking profits from global economic chaos, recession and collapse in bank share prices. Impact of credit crunch on wider economy. Main Street and Wall Street will both be affected deeply. Retail banking, corporate banking, wholesale banking and investment banking will become profitable again. The credit crunch following the 2007-8 banking crisis will lead to further consolidation, cuts in retail outlets and staff redundancies. This will remove competition from the market and allow greater profit margins over things like commercial loans and mortgages or current account bank charges. Coupled with cost-savings, this will result in healthy profits once the credit crunch resolves and wider economic tensions. Banking share prices are in turn likely to show recovery, which could also mean that the end cost of expensive government rescue packages may be less than feared, if they involved providing banks with equity in return for shares. Taxpayers may actually make a gain from their public ownwership of slices of banks. While huge remuneration for CEOs and Chairman of banks will come under scrutiny, and while regulation will be stricter, we can expect rewards for the most skilled bankers to once again be very generous. Interest rate cuts will also help banks indirectly by stimulating the businesses they lend to and helping to take the edge off a long recession. Video by keynote conference speaker Dr Patrick Dixon