In April 2023, the European Commission presented a legislative proposal to update the 2014 bank crisis-management framework. The new rules, despite not being finalised, are already causing a stir among practitioners and banks.
Banks in the country will lose the ability to generate sufficient levels of capital.
Work is underway to ensure the financial sector in Europe is able to stay resilient through a severe operational disruption.
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.
Banks’ main concern is that households will prefer risk-free central bank digital currencies over deposits. How CBDCs are implemented will be key to preserving financial stability.
CEO and president Calixto Garcia-Velez explains how the bank is dealing with current commercial real estate woes, while anticipating double-digit loan portfolio growth for 2024.
The country’s slow growth and investment outlook will reduce demand for mortgages, a key growth driver for its retail banks.
Compared to Brazil, banks in Europe or the US have lost the payments game.
Being put on the FATF greylist means domestic lenders may struggle to maintain correspondent banking relationships and access external finance.
The country is in the centre of a storm of political instability, fiscal and financing risks.
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.
Banks in the region are more exposed as they use fewer interest rates derivatives, while net interest income is larger than in other regions as a percentage of total revenue.
Monetary policy in the region is decoupling from the US Federal Reserve. Next year will be key to assess whether the region’s central banks have graduated to countercyclical policy and can provide a lesson for the world.
In 2022, banks’ performance in Latin America and the Caribbean had a boost from rising interest rates and economic growth.
The future government will face three major economic challenges: a marked slowdown in growth, a deterioration in budget deficit and an increase in credit risk.
Like other challenger banks, Metro Bank has struggled with profitability over the past few years. But unlike others, it also reported a drastic drop in Tier 1 capital.
The sector was described as stable by the IMF in September, but the ongoing conflict with Israel is set to change the outlook.
The mergers and acquisitions environment has been suppressed by inflation and rising interest rates so far.