Signs from the banking industry point to the end of an economic cycle. Growth in volumes and top line revenue is slowing, as is loan growth, which has sunk to the lowest levels in five years.
But there’s something different about this late-stage cycle. In McKinsey & Co’s annual global banking report, the consulting firm found that nearly 60 percent of global banks weren’t economically viable (their cost of equity was higher than their return on equity). Essentially, the banking sector — and more importantly, individual banks themselves — need to develop their own late-cycle priorities to stay competitive.
This content is available exclusively to Tearsheet Outlier members.
Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account