Though, it has been analyzed threadbare in different fora, it would not be out of place to start with a bird’s eye view of the global financial crisis to put the recent developments in proper perspective. The global financial crisis, though brewing for a while, started to show its severe effects from the latter part of 2007 and into 2008.
The outlook for asset quality is also favorable. As economic activity continues to grow and businesses become more confident about their customers’ demands, business loan demand should increase, and pressures on banking margins should begin to ease.