Second, thrift banks must embrace the change of mindset from a “brick and mortar” thinking to embracing the promise of digital transformation in providing crucial banking services to its clients. Moreover, smaller thrift banks can take advantage of these available digital technology to lower operational costs. The opportunities are limitless, but risks, business synergies and contribution to growth have to be carefully considered.
Important reference values for this assessment are a government deficit level of 3% of GDP and a debt-to-GDP ratio of 60%. In addition, through the Stability and Growth Pact, countries have committed themselves to respect the objective of a budgetary position close to balance or in surplus over the medium term.