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More than half of the world's banks risk not surviving the crisis — McKinsey

Analysts recommend financial institutions move to decisive action

Photo: isorepublic.com

The global banking industry has entered the last phase of the next economic cycle, credit and revenue growth is slowing, and more than 60% of the world's banks are losing value in anticipation of a possible global crisis. This is stated in the report of the international consulting company McKinsey, writes Bloomberg.

“This is probably the last pit stop (“ stop over the pit ”) in this cycle for banks to quickly rethink their business models. Inventive are likely to become leaders in the next cycle. Others risk remaining footnotes on the sidelines of the story” says in the report.

Experts note that 35% of the world's banks experience problems from imperfect business models, lack of capital and work in unfavorable markets. According to McKinsey experts, in the event of a transformation failure, perhaps the only survival option for them will be selling to a stronger competitor.

In this regard, McKinsey calls on banks to urgently act in two directions:

1. Develop new technologies, which will increase business profitability;

2. Plan large mergers to increase capital reserves.

Recall that earlier the International Monetary Fund (IMF) once again worsened the forecast for global economic growth. And although the change in the forecast compared to the previous report is small — minus 0.3%, the IMF does not worsen the forecast for the first time. That is, the global economy continues to deteriorate faster than expected.

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