The People’s Bank of China is testing a digital version of the renminbi. If adopted on a widespread basis, the e-CNY, as it would be called, has the potential to strengthen banks' role in the e-payment system while also increasing competition for technology companies.
Stephen Tu, Melina Skouridou and Farooq Khan explain how four forces reshaping finance will likely reduce banks’ revenue from core activities and undermine their role as financial intermediaries. Plus, Alka Anbarasu explains why India’s banks will weather the stress from a COVID-19 resurgence, and Jasper Cooper gives an update on insured hurricane losses in the US.
High-frequency alternative data and official retail sales data across G-20 economies indicate that household consumption is slowing from the strong growth earlier this year. Consumer retail and recreation mobility has deteriorated in many economies, and workplace visits and public transit usage remain below pre-pandemic levels. These trends and the coronavirus’s resurgence point to lingering risks to global economic recovery.