Our outlook for global banks remains steady. As of June 30, 2024, about 75% of bank rating outlooks were stable. This resilience stems from solid capitalization, improved profitability, and still sound asset quality. The expected economic slowdown in the year's second half, while interest rates remain elevated, will test business volumes, asset quality, and financing conditions. A multitude of general elections in 2024, and the Russia-Ukraine and Israel-Hamas wars bring spillover risks, including market volatility. Positively, most banks' earnings continue to benefit from high interest rates and limited credit losses.

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