Financial Institutions

Highlights

• 13 May 2013
  • Update to Global Macro Outlook 2013-14
    Over the past three months, the global economy has lost momentum as it recovers from last year’s slowdown. Overall, we expect real GDP growth in the G-20 advanced economies of around 1.2% during 2013, a little weaker than previously forecast, followed by 1.9% in 2014. We continue to expect the G-20 emerging economies to outpace advanced G-20 members... Full Report
  • China's shadow banking continues to weigh on banks' credit profiles
    China's latest regulatory steps to tighten controls on wealth management products, part of China's shadow banking market, are credit positive for banks. However, the ultimate impact from shadow banking on banks will depend on amount, timing and allocation of potential losses, variables that are difficult to assess at this point, given the lack of transparency and the fast-evolving nature of the system... Press Release l Full Report​​​
  • Competition among US banks weakens loan covenants and pricing, a credit negative
    The US Federal Reserve's recent quarterly Senior Loan Officer Opinion Survey showed that large US banks continue to ease covenants for large and middle market commercial and industrial borrowers. At the same time, the survey showed narrowing loan spreads. Both factors are credit negative for US banks... Full Report​​​​