Sunday, May 26, 2013

26/5/2013: 'North' out, 'South' in?

The theme of 'North' (advanced economies and primarily EZ) banks deleveraging (exiting) out of the future centres if global growth - the 'South' - has been consistent one in my presentations on the future of global financial services. Here's an example:

It is good to see other researchers also spotting the trend:

However, my concern is distinct from that of the above authors. I do not think that EZ banks' deleveraging out of the middle income and emerging markets will have a huge detrimental impact, as - in contrast to earlier episodes - we now have emerging markets and BRICS banks more than capable of absorbing capacity created by the EZ banks exits.

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