The slowdown in the global economy weighs in particular on the banking sector. A third of banks may not be able to withstand a turnaround, according to a report by the New York consulting firm McKinsey, which has studied a thousand banks around the world.
Ten years after the 2009 financial crisis, more than one bank out of three could go out of business, according to a report by the New York consulting firm McKinsey. These banks are well established, mainly located in Western Europe and Asia, but have not evolved over time.
Their weak point lies in their performance. These banks generate an average profitability of just 1.6%, while the best students do ten times better. Particularly low or even negative rates weigh on the incomes of banking institutions.
Specialization to survive
Some are trying to cope by multiplying the loans. This strategy could prove disastrous if the activity does not return. Unpaid loans could then jeopardize the survival of banks.
To avoid this, the McKensey report advocates specialization. Between customers, geographical areas or even trades, banks will have to choose. Knowing that in ten years, 600,000 banking jobs have been eliminated in the euro area.
The European Central Bank has chosen to continue its ultra-accommodative policy. This leaves a little time for bad students to prepare for their future.
► See also: Crisis: bank bailout