And they are much better prepared, thanks largely to the regulatory onslaught that followed the GFC. ![]() ![]() This time, bankers are reacting to extrinsic factors. It’s tempting but misleading to compare 2022 with the global financial crisis (GFC) that erupted in 2008-a calamity of financiers’ own making. The moment is more propitious than it looks, so long as economic disturbances stay within baseline bounds. Crashing growth stocks sapped some of the momentum and swagger from the fintechs and “neobanks” that were supposed to be eating the old guard’s lunch, giving the banking establishment an interval to catch up. Rising interest rates-the tool central banks are dusting off to quell inflation-benefit lenders up to a point. Rate-hike-induced recessions are also expected. That’s the prognosis, as the world gropes its way through slowing growth and the first bout of prolonged inflation in 40 years-plus a 1970s-style energy squeeze and 1960s-style nuclear threats. ![]() At least, for some banks-if the times don’t get too bad. The bad times ahead could be good times for banks.
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