Now that most of the GDP figures are in for the year, it looks like global growth was quite a bit stronger than this, with global GDP estimated to be up by around 5 per cent in 2010.
Operating in this demanding environment has exposed banks to various challenges. The last decade has witnessed major changes in the financial sector - new banks, new financial institutions, new instruments, new windows, and new opportunities - and, along with all this, new challenges. While deregulation has opened up new vistas for banks to augment revenues, it has entailed greater competition and consequently greater risks.