As laid bare by stress test results, relevant credit growth in China is unlikely as it could further undermine banks’ loss absorption capacity.

The growth of credit in Turkey has suffered in the past few years, though it showed more dynamism last year.

Banks in the country will lose the ability to generate sufficient levels of capital.

Slower economic growth will weigh on loan growth, and banks worldwide have announced significant job cuts.

The country’s financial institutions are working on consolidating the role of cash and the requirements for access to it with a law that would take effect in January 2025.

Polish and Czech banks dominate the top 10 based on Tier 1 capital, with Hungary’s OTP Bank pipping PKO Bank Polski to first spot this year.

The country’s slow growth and investment outlook will reduce demand for mortgages, a key growth driver for its retail banks.

Being put on the FATF greylist means domestic lenders may struggle to maintain correspondent banking relationships and access external finance. 

Banks have not made substantial improvements since the FCA’s remarks in July.

Banks in the region are raising less debt amid uncertainties about interest rates and the growth outlook.