Discover insights and thought leadership from across Moody’s on the banking industry, including commentary on issues and events impacting the sector.
This paper compares Financial resilience (FR)—a forward-looking measure of whether a firm’s current financial condition is likely to remain stable or deteriorate under alternative macroeconomic scenarios—for S&P 500, Russell 1000, and Russell 2000 constituents on April 8, 2025, versus April 8, 2026, holding the portfolios and methodology constant, but against a very different macro backdrop.
Insights from our 2026 Banking Study find APAC banks are not just investing in technology, they are simultaneously investing in the people, culture and organizational change that decide whether technology delivers.
This report, which is based on primary research with 348 senior banking leaders in the US, Europe and Asia-Pacific, outlines the thinking across sector. As the banking industry becomes increasingly competitive, discover what strategies will position banks to build a competitive advantage.
Leading banks stay ahead by continuously monitoring credit risk, catching early warning signals before loan portfolio health is affected, and taking strategic action.
Across the Asia‑Pacific region, regulators are mandating detailed stress tests, such as modeling the impact of a 1‑in‑200‑year flood event. Portfolio‑level averages can hide severe impacts on a concentrated group of borrowers, masking firm‑level vulnerability and unforeseen capital erosion.
In an era where rapid market shifts and regulatory demands redefine risk management, early warning systems (EWS) empower banks to transition from reactive to proactive strategies by detecting emerging risks before they impact profitability or compliance. By integrating diverse signals, an effective EWS helps leadership safeguard financial stability, align with regulations, and uncover opportunities for growth and resilience.
Identify and prioritize high-value prospects using Moody’s robust firmographic data, growth indicators, and M&A intelligence. Navigate corporate hierarchies to help uncover potential opportunities and better understand a prospect’s broader network. These insights can help relationship managers shape strategic territories and focus on prospects with strong potential for growth.
Support due diligence processes with globally sourced data for sanctions, Politically Exposed Persons (PEPs), and adverse media screening. Help analyze complex corporate structures to identify Ultimate Beneficial Owners (UBOs), supporting transparency from the outset. By surfacing potential compliance risks early, banks can better align sales and risk teams, reducing delays and delivering a smoother client onboarding experience.
Structure and price deals with greater analytical rigor using Moody’s models, which integrate your client’s risk profile with proprietary industry benchmarks and market data. Model multiple scenarios to help inform the development of competitive, risk‑adjusted terms that balance profitability with your financial targets and the client’s objectives.
Support credit assessments with a robust analytical foundation for credit assessments by automating financial spreading and enriching borrower financials with Moody’s proprietary data and benchmark models. This integrated credit view can be used with generative AI to assist in generating coherent, data‑backed credit memos, supporting more efficient and transparent underwriting processes and helping inform decision-making.
Move beyond periodic reviews by enabling more continuous, automated support for portfolio monitoring. Support more proactive management of covenant compliance while our early warning solution scans market events and proprietary data to help identify emerging credit risks. Perpetual KYC capabilities can be used to support continuous screening of borrowers against sanctions, PEP, and adverse media lists, helping provide timely visibility into potential new compliance risks. This integrated approach is designed to deliver actionable intelligence to support risk analysis and help identify and manage potential credit and compliance risks at an earlier stage.
Gain a more integrated view of your balance sheet by connecting asset liability management (ALM), capital planning, and liquidity risk analytics in one integrated platform. Run sophisticated stress tests and forward‑looking simulations to help assess profitability and model potential decision impacts. This is designed to support your institution in managing risk, optimizing performance, and informing strategic financial decisions that align with internal stakeholders and long-term resilience objectives.
Consolidate risk data across the institution for a more integrated view of your credit portfolio. Help identify and assess potential risk concentrations across sectors, industries, and geographies. With these insights, you can run “what‑if” scenarios and analyze risk‑adjusted returns to support capital allocation objectives and help inform strategic decisions aligned with your overall business objectives.
Banking Decision Intelligence: Bring together risk, return, funding, and market context into a single, coordinated view to support visibility into both risk and opportunity across the institution. Integrates Moody’s trusted analytical engines with transparent, controlled AI to help streamline decision cycles, highlight key trade‑offs, and support discussions that move from “what the metrics say” to “what we should do about them” with confidence.
Bringing together data, experience, and best practice capabilities, with our specialized and agile intelligence, Moody’s banking solutions empower banks to adapt confident and efficient decision making, to ultimately drive growth and meet strategic goals.
