Global Bank Crisis Can Return, Unless Interest Rates Rise
Central bankers Janet Yellen (America), Mario Draghi (Europe), Haruhiko Kuroda (Japan), and Mark Carney (England) could crash the finance business. The International Monetary Fund (IMF) warns prolonged low interest rates by major global central banks harm insurance companies and banks, raising the risk of financial instability. Easy money supports economic recovery, but "some monetary policies, such as negative interest rates, are reaching the limits of their effectiveness, and the medium-term side effects of low rates are rising for banks and other financial institutions." The hit on their investment spreads and share prices can cause fraud or corruption, and "is likely to put pressure on banks to curtail lending as investors question whether banks can deliver sustainable profitability and dividends."
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By: Kyle4Chan
61 months ago
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