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Banks will struggle to generate profits even as the global economy recovers, IMF says

May 22, 2020


WASHINGTON — The beaten-down banking sector will remain under pressure through 2025 even as the economy recovers, the International Monetary Fund said Friday.

In its latest “Global Financial Stability Report,” the IMF found banks across nine advanced economies will struggle to generate profits over the next five years as the coronavirus pandemic causes a sustained period of low interest rates. The Fund said the Covid-19 economic downturn will “test banks’ resilience” as they face loan losses and tighter margins from low interest rates.

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