At the same time, this newfound resilience will come under pressure if the current slump in bank profitability were to persist going forward. The prevailing low interest rate environment is one factor that dampens profitability prospects.
Surprisingly, the relationship between public debt and growth is remarkably similar across emerging markets and advanced economies” (page 2). 2  BIS Review 88/2010  First, consider the chain of exposures to the credit risk – from the holders of those government securities, to their creditors, and their creditors’ creditors, and so on.