Staying Strong in Volatile Markets: How Banks Can Overcome Challenges to Funding and Lending

Banks are facing challenges to funding and lending in today’s volatile markets. The war in Ukraine shows no sign of ending, we’re in a new interest rate environment, and some market fallout has been seen, notably the failure of U.S.-based Silicon Valley Bank, which prompted turmoil in wider markets. Yet banks must remain steady, keep lending and try to turn a profit at the same time, according to panellists at the European Banking Federation and S&P Global Market Intelligence’s most recent “Banking Essentials” webinar.

Key takeaways:

1. What is the ripple effect of the collapse of Silicon Valley Bank on European Banks
2. How the repayment of TLTRO throughout 2023 will impact banks' funding
3. What rising interest rates mean for lenders’ ability to raise MREL funding and its pricing
4. Whether rising rates will compel banks to adjust dividend policy to remain investable
5. Why competition for deposits may increase as banks pass on rates to borrowers
6. How banks can cope with shortcomings in credit risk management and the risk of future bad loans
7. What opportunities are available to banks amidst the challenges