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RegulationsDecember 10 2020

Developed market banks ‘can withstand higher defaults’

Global systemically important banks (G-SIBs) can afford core capital ratios to fall by 5 percentage points before eating into capital buffers, according to Capital Economics.
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Developed market banks ‘can withstand higher defaults’

Despite the fallout from Covid-19, developed market banks should be able to withstand higher defaults next year, according to consultancy Capital Economics.

The balance sheets of developed market banks have remained in reasonably good shape this year and credit losses have stayed low, but as governments pull back policy support defaults are likely to rise next year.

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