Citigroup is reducing the timeline from analyst to associate for junior investment bankers, moving staff up after two years regardless of whether their performance is exceptional. The bank is extending the faster track even to moderate performers, a significant departure from past practice.

The move is a clear reaction to private equity firms recruiting entry-level banking talent before they reach senior roles. The policy change signals a wider battle across Wall Street to retain junior staff as rival firms aggressively court young bankers.