Wang Jian: How Does the Banking Industry Deal with the Challenges Posed by Low Net Interest Margins?
In recent years, the global banking industry has been challenged by low net interest margins, which has not only exerted a direct impact on banks’ profitability but also profoundly affected global financial markets and economic growth.
Wang Jian, professor at the School of Management and Economics (SME), The Chinese University of Hong Kong, Shenzhen (CUHK-Shenzhen), Associate Director of Shenzhen Finance Institute (SFI), and Director of Center for Macro-Financial Stability and Innovation, SFI, and his collaborators conducted an in-depth discussion on the causes of low net interest margins and their multifaceted impacts on the banking industry in an article published on the PKU Financial Review. He pointed out that the slowdown in global economic growth and excessive production capacity relative to consumer demand have caused long-term decreases in interest rates, normalizing the flattening of the yield curve and constantly squeezing the net interest margins of the banking industry.
The full version of this article is published in the PKU Financial Review Issue 20.
