Bad debts at Asian banks have climbed to their highest since the global financial crisis and the trend will likely worsen as regional economies battle against China's slowdown and volatile oil and commodities prices, a Reuters data analysis shows.
China's exports likely returned to growth for the first time in nine months in March while the pace of bank lending may have picked up, adding to signs that the world's second-largest economy may be stabilizing. Chinese leaders have pledged to make monetary policy more flexible this year even as it leans more on increased fiscal spending and tax cuts to support economic growth and cushion the pain from structural reforms.
Last week featured two relatively important central bank meetings, with both the Bank of Canada and the European Central bank coming off as relatively dovish relative to the market’s expectations. As we look ahead to central bank action in the coming week, the Federal Reserve and Bank of Japan are looking increasingly likely to sing a similar tune.
Profits have soared since the global financial crisis at the five biggest U.S. banks with market-making dealing operations, New York Federal Reserve economists said in an article released on Wednesday.
A weak performance in September could leave investment banks' revenues in the third quarter down about 10% from a year ago, putting 2015 revenues on track to fall from a year ago and intensifying pressure on European firms to scale back.