Half The World’s Banks Won’t Survive The Next Crisis, McKinsey Finds
Translation: If you aren’t big enough to be a crony of the government, you will be sacrificed. Better to sell out to a crony bank while you can.
More than half of the world’s banks are at risk of collapse in the next global downturn if they don’t start preparing for late-cycle shocks, McKinsey & Company warned in its latest global banking outlook.
The consultancy firm warned on Monday, in a 55-page report titled ‘The last pit stop? Time for bold late-cycle moves’, that 35% of banks globally are “subscale” and will have to merge or sell to larger firms if they want to survive the next crisis.