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US consulting firm McKinsey said Monday that a third of big global banks may not survive a major financial shock, with those in western Europe and Asia most at risk.
The study by McKinsey looked at 1,000 banks in developed and emerging countries and found that just over a third of them had made a return on capital of just 1.6 percent over the past three years.
Returns - Percent - Banks - Period
This compares to returns of just over 17 percent for top banks over the same period.
"Nearly 35 percent of banks globally are both sub-scale and suffer from operating in unfavourable markets", as well as having flawed business models, said McKinsey.
Downturn - Banks - Option - Reinvention
"To survive a downturn, merging with similar banks may be the only option if a full reinvention is not feasible," it said.
McKinsey sees the issue as urgent as global growth stutters.
Jury - Market - Uncertainty - Recession
"While the jury is still out on whether the current market uncertainty will result in an imminent recession...
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