What Does the Future Hold for the International Banking System?
The international banking industry faces a challenging future, having to consolidate at a time of heightened global financial volatility, anemic growth in advanced countries, and shifting global growth balances. After a long period of sustained exp...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/10/16875391/future-hold-international-banking-system http://hdl.handle.net/10986/17079 |
| Summary: | The international banking industry faces
a challenging future, having to consolidate at a time of
heightened global financial volatility, anemic growth in
advanced countries, and shifting global growth balances.
After a long period of sustained expansion and accommodating
regulatory treatment, the structure of international banking
is changing as global banks' business strategies shift
toward fast-growing emerging-market economies. The center of
gravity for international lending is shifting, with the role
of European banks shrinking and American, Japanese, and
emerging-market banks filling in the space. Against this
backdrop, the current debate on adding economic stimulus to
support the sputtering global economic recovery should
consider the possible contractionary impacts of bank
deleveraging, even with global interest rates remaining at
historically low levels. |
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