Strategy Note /
Global

Emerging market banks: The winners and losers from tighter monetary policy

  • 15 emerging markets have raised interest rates this year; more will follow. Most bank margins benefit from higher rates

  • Saudi bank margins are most sensitive to higher rates, but profit sensitivity is highest in Poland, Korea and Morocco

  • Factoring in rate forecasts, the biggest bank profit boost is in Poland, Bangladesh, Pakistan. Turkey is the clear loser

Emerging market banks: The winners and losers from tighter monetary policy
Rahul Shah
Rahul Shah

Head of Financials Equity Research

Contributors
Rabail Adwani
Rohit Kumar
Tellimer Research
22 October 2021
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