 "Illustration: Binay Sinha")
The Ukraine conflict poses the biggest challenge to growth since the global financial crisis (GFC) of 2007. The world economy will grow at 3.2 per cent in 2022 and 2.7 per cent in 2023, says the International Monetary Fund (IMF). Growth in 2023 will be the lowest since 2010, leaving aside the pandemic year of 2020.
Slow growth and rising interest rates are bad for banks. Slower growth spells an increase in bad loans. Rising interest rates translate into losses in the bond market.
The astonishing thing is that it appears that the global banking system does not face any high risk
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