July 12, 2019
It’s been over a decade since the infamous financial crisis – that terrible period when fiscal growth took a hit across the world. The year 2009 was the first year when global GDP contracted in real terms, with the ensuing recession estimated at over $10 trillion. Industries from around the world were under the scanner, especially the banking industry. However, as the saying goes, when the going gets tough, the tough get going!
Deloitte notes that the global banking system is, today, bigger and more profitable than it previously was. Assets reached $124 trillion in 2018, with return on assets being 0.9%. Having said this, although we’ve witnessed recovery in banking globally, the journey has not been uniform - some players moved ahead faster than the others. While many US and Asian banks have taken resilient strides ahead, their European counterparts still lag to an extent. In Europe, during the crisis, many banks were bailed out by their respective countries’ governments. Some that were not so lucky had to shut down or shrink their businesses. Research from 2018