The environment in which banks operate is no longer stable and predictable. Banks now face major challenges as a result of stringent regulation, business difficulties in a context of zero or negative interest rates, and the rapid digital transformation demanded by their customers. Institutions embrace and adapt to the first two factors, placing the customer at the heart of their digital strategy
Our member institutions are used to bringing out the best in every scenario—finding opportunities where others see risks. Banks know how to manage the risks inherent in their business. It is in their DNA. And opportunities for banks will always benefit customers and society.
Banks improve their profits by financing the economic improvement from which other stakeholders benefit. They are an indicator of economic developments. Improving profitability is a priority for banks, enabling them to obtain the funding and resources that strengthen their medium- and long-term viability. Adequate bank profitability above the cost of funding strengthens their stability and benefits society as a whole.
Some analysts warn that banking faces many long-term threats. It is always easiest to extrapolate today’s difficulties into the future. They also cite as a threat the new competition in the digital provision of financial services from non-bank entities. They underestimate banks’ ability to adapt. It is also to be expected that authorities will correct the regulatory mismatch between banks and this new competition, taking a medium- and long-term perspective aimed at strengthening financial stability and consumer protection in an environment of fair competition.
