Credit to China remained substantially lower at end-September 2023 compared to mid-2021
But despite the global downturn, there were some notable bright spots
In the first quarter of 2024, banks expect a small net increase in demand for loans to firms — for the first time since the second quarter of 2022
Facebook Marketplace scams currently account for 73% of all purchase fraud cases at the bank.
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.
In 2022, banks’ performance in Latin America and the Caribbean had a boost from rising interest rates and economic growth.
The strong dollar has dampened the growth of Islamic banking services in Asia-Pacific, while Saudi Arabia continues to see large expansion.
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.
