While the provisions against unstable fiscal positions proved to be insufficient, the drafters of the institutional framework turned a blind eye to other macroeconomic imbalances of the type I have just mentioned – in other words, risks stemming from divergences in competitiveness, exaggerations in national real estate sectors and overblown financial systems.
There are large banks that operate on the global stage and small ones that focus on domestic business; there are banks which are profitable and there are banks which have not earned their cost of capital for several years now. All these banks face similar challenges. First, they have to deal with geopolitical risks, that is, with higher uncertainty.