BLOG — June 9, 2026
Banking Risk Monthly Outlook: June 2026
What we're watching
Our banking risk experts provide insight into events impacting the financial sector in emerging markets in June:
- Regional branches of the People’s Bank of China publicized terms for personal and corporate financing to improve information asymmetry
- Islamic banking law aims to support financial inclusion in Uzbekistan
- Mexican banks will aim to hedge themselves against political risk
- Amendment of Ghanaian banks’ dynamic cash reserve ratio to a uniform ratio will likely support credit growth
Asia-Pacific banking risks
Regional branches of the People’s Bank of China publicized terms for personal and corporate financing to improve information asymmetry. Banks are now required to publicize financing terms on corporate and personal loans, before signing off corporate loans, starting in June 2026. Financing costs usually include interest rate and other costs (collateral registry fees or insurance fees), which are now required to be disclosed to the public. Terms on personal financing costs are also expected to become publicly available in August 2026, disclosing relevant interest rate or non-interest rate costs of personal loans. This policy is expected to lower overall financing costs for borrowers and encourage better access to financing.
Islamic banking law will support financial inclusion in Uzbekistan. Islamic banking has become a strategic priority for Uzbekistan, aimed at boosting financial inclusion and attracting investment. In March 2026, the Central Bank of Uzbekistan signed the Islamic Banking Law, which is set to enter into force in late June 2026. The new legislation establishes a dual banking system, enabling sharia-compliant financial services to operate alongside conventional banking. This move is expected to broaden access to financial products, particularly for populations seeking faith-based banking alternatives.
Latin America banking risks
Mexican banks will aim to hedge themselves against political risk. After the US’ sanctioning of two banks and a small financial institution in early 2025, banks have been instituting rules (some of them internal, some others led by the regulators) to limit the risk of further sanctions. Limits have included increased scrutiny over certain transactions and tighter controls on customers. As the United States-Mexico-Canada Agreement (USMCA) review looms (the domestic preparation review started in the last quarter of 2025, but the mandatory trilateral review is legally scheduled for July 1 of this year), it is likely that banks will consider their position toward exposed borrowers. Banks are expected to limit their foreign exchange exposures to avoid depreciation risks.
Africa banking risks
Ghana’s amendment of banks’ tiered dynamic cash reserve ratio to a uniform ratio is likely to support credit growth. During the Monetary Policy Committee meeting held on May 20, 2026, the Bank of Ghana amended the dynamic cash reserve ratio (CRR) framework by introducing a uniform CRR of 20% of deposits, to be held in domestic currency with effect from June 4, 2026. This marks a shift away from the tiered CRR framework implemented in March 2024, under which banks with a loan‑to‑deposit ratio (LDR) above 50% were required to maintain a CRR of 15%, banks with an LDR between 40% and 55% were required to maintain a CRR of 20% and banks with an LDR below 40% were required to maintain a CRR of 25%. The amendment is expected to support credit growth: The sector’s LDR stands at 32% as of the first quarter of 2026 and most large banks have LDRs below 40%, and thus will benefit from additional liquidity released by the lower CRR. The change could intensify competition for deposits among smaller banks because they tend to have higher LDRs due to higher reliance on interbank and other wholesale funding, therefore potentially weighing on their profitability and constraining their growth prospects.
—With contributions from Tan Wang and Thandeka Nyathi
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.