European banks fared relatively well in 2022, when the long-running low-interest, low-inflation environment abruptly ended. Will their profitability endure through 2023 as the effects of lingering inflation, weak credit markets and lackluster economic growth hit home? S&P Global Ratings examines what banks can realistically expect in 2023.
The pandemic intensified the existing trend toward the demise of cash as a medium of exchange, with digital payment forms becoming the preferred choice for a growing segment of the population. Countries are experiencing varying degrees of success in doing away with their banknotes, as exemplified by India’s and Nigeria’s recent attempts.