ERNST & YOUNG SRL

  |  19.04.2017

2017 must be the year that banks move decisively to improve their profitability

The year ahead is one of uncertainty for many banks, with the implications of Brexit for the UK and the European Union (EU) unclear, the election of Donald Trump as President of the United States raising questions about the future direction of banking regulation in the US and European pushback on so-called “Basel IV” regulations driving delays in finalizing those rules.

The last year has highlighted weak and eroding profitability for many banks around the world. Even in emerging markets, profitability has been squeezed as global economic growth has weakened. Profit trends may strengthen in 2017 — particularly for US banks, which are positioned to benefit from higher interest rates and the recovery in consumer and business confidence that followed the US election. However, the sustainability of improved trends in the operating environment — and how transferable these improvements are to banks in other advanced economies and the emerging markets — remains uncertain.
 
For complete information please see the Romanian version of the article here.

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