Banks face stern test when credit cycle turns

(Reuters) - "Given the key role that a benign credit environment has
been playing in boosting the performance of the financial
sector over the past years, a turn in the credit cycle
represents a significant risk to its outlook," the Basel-based
BIS said in its annual report.




A combination of low interest rates and unusually
infrequent rates of default among borrowers in many countries
have played a big part in boosting profits at financial
services companies.


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