Newsletter November 08: Systemic banking problems set to worsen in developed world

The deterioration in banking sectors across a large number of countries, which has been evident for at least three years, is set to worsen as the global economy slows down and loan books decline in quality. In a systemic banking report* likely to alarm regulators struggling to contain a global financial crisis that has resulted in the bailing out of several banks, rating agency Fitch identifies a continuing global shift of country banking systems into higher risk categories.