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Rate Hikes Remain as Tailwind for European, GCC Banks
This year is looking to be a positive one for the net interest income of large banks in Europe and the Gulf Cooperation Council region amid high interest rates. In Europe, industry experts anticipate that the difference between banks’ interest revenues and interest expenses will increase in 2023 as central banks continue to increase rates and loan portfolios grow. Rate hikes have so far been a tailwind for most of the banking sector as deposit betas, a measure of how quickly central bank interest rate hikes are passed on to deposits, remain low. Consequently, rates on interest-earning assets have been much higher ... (full story)