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IMF: These Are The 9 Banks To Worry About


The International Monetary Fund on Wednesday said nine of the world's biggest banks may struggle to maintain profits in the new global economy in the coming years.

According to IMF's biannual Global Financial Stability Report, Citigroup Inc. (C), Barclays PLC, Deutsche Bank AG , Société Générale SA, UniCredit Group SPA, Standard Chartered PLC, Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are all likely to post mediocre results in the next few years.

These nine banks together represent $47 trillion in assets, or about one-third of global banking loans and assets.

"About a third of banks by assets may struggle to achieve sustainable profitability, underscoring ongoing challenges and medium-term vulnerabilities," the IMF said in the report.

According to the IMF, the consensus among banking analysts was for a return on equity of less than 8 percent by 2019 for each of the nine banks. However, if banks don't earn above 8 percent for cost of equity, they are unable to maintain consistent profits and typically struggle to build capital.

by RTTNews Staff Writer

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