FIG funding squeeze to hit corporate lending market, says Morgan Stanley
Banks will step away from corporate lending and international expansion thanks to rising costs in the unsecured funding market and regulation that will make banks more competitive in their home market, analysts at Morgan Stanley and Oliver Wyman said in a report published on Monday.
The analysts believe the market has underestimated the degree to which banks will rethink the businesses they are involved in over the next 12-24 months. The rising cost of unsecured borrowing and increased capital requirements will force investment banks to reshape their strategy towards lending, the report said.
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