Taking into account the growth rate of lending, reduced unit margins and weak demand for asset management products, in the current situation it is difficult to foresee a significant increase in banks’ revenues. In the short term the recovery of profitability requires decisive action on costs, including labour costs, which represent more than half of the total.
For research on the role of bank capital, see Basel Committee on Banking Supervision (2010); Macroeconomic Assessment Group (2010); and Firestone, Lorenc, and Ranish (2017). -7size of the economy is one-third the increase in household debt seen in the previous decade. Business debt rises in expansions.