Unusual move identifies institutions by name, includes Japanese megabanks
Cross-posted from Nikkei Asian Review
“About a third of banks by assets may struggle to achieve sustainable profitability, underscoring ongoing challenges and medium-term vulnerabilities,” the IMF said, referring to the world’s most important financial institutions.
The IMF’s critique of the banks came in its biannual Global Financial Stability Report, released Wednesday as finance ministers and central bankers from 189 countries gather in Washington for the annual meetings of the IMF and the World Bank.
It is an unusual step for a body like the IMF to identify banks by name. The report named nine financial institutions in all — Citigroup, Societe Generale, UniCredit Group, Deutsche Bank, Barclays, Standard Chartered, Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group — as likely to deliver subpar profits.
All nine declined to comment on the report…