Banks have broad businesses. They get fee income by offering a wide range of services including wealth management, bancassurance as well as those involving loans, credit cards, markets and treasury.
Interest rates and inflation are two key global trends that could impact local banks as economies emerge from the pandemic. Rising inflation has caused the US Federal Reserve to communicate the end of its bond-buying programme and the start of an interest rate hike cycle.
The US reported its highest inflation rate in 40 years while Singapore also saw inflation at the highest in a decade. Inflation is partially due to disrupted supply chains and the rising price of oil and gas that is a side effect of the focus on sustainability and a shift away from fossil fuels, especially coal.
