On Monday, the CEO of Standard Chartered, Bill Winters, warned that the banking industry could face new challenges despite the recent stabilization of the market. He highlighted that imbalances in some banks could lead to crises in the future.
Although regulators intervened last month to prevent a wider banking crisis, Winters cautioned that the current rapid interest rate hikes, aimed at controlling inflation, have exposed flaws in some banks’ business models. He emphasized the need to understand these issues and anticipate changes.
Winters praised the U.S. and Swiss central banks for their effective response, but also noted regulatory gaps that were highlighted during the episode. He urged caution in addressing these gaps to avoid excessive regulation.
Standard Chartered, which generates most of its profit in Asia and emerging markets, is scheduled to report earnings on Wednesday. Last quarter, the bank saw a 28% increase in annual pretax profit due to global interest rate hikes that boosted its lending revenue.