The Committee discussed the outlook for the global banking system in the light of recent economic and financial market developments. While higher rates can support banks' net interest margins and related income, they can also expose vulnerabilities that have built up during the low-for-long era. These include risks stemming from potential credit losses related to rising debt service ratios for borrowers and the interest rate sensitivity of bank depositors. In addition, banks are exposed to the NBFI sector through a wide range of channels. Banks and supervisors need to stay vigilant to the evolving outlook, which ... (full story)