What does rising interest rates mean for banks?

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According to Accenture, rising interest rates are one of the forces that are currently reshaping markets, helping to break down barriers to entry and blurring industry boundaries. Rising interest rates would therefore appear to provide the fuel to ignite innovation. The shift from very low to higher rates has immediate and significant consequences for the entire financial services industry: rising interest rates increase banks' income , and many of them will likely choose to invest the resources they have accrued in new projects, offerings, and initiatives. But higher rates could also put borrowers in difficulty , forcing banks to ask themselves how to address the needs that will emerge.

Banks play a crucial role in fostering a new corporate culture of sustainability. As iceland whatsapp resource the industry is uniquely positioned to address the challenges of climate change, sustainability becomes the new strategic imperative . Faced with the real possibility of catastrophic environmental damage and dire macroeconomic consequences, banks are being challenged to take concrete action, demonstrating that they can meet rigorous standards when it comes to monitoring environmental risks and acting accordingly, based on increasingly accurate analyses.

The pressure on the banking sector, exerted from various quarters, has not only contributed to increasing companies' adherence to the principles of social responsibility but has also accelerated highly innovative processes in various areas of application: from data management to the so-called "green banking", from the modernization of IT infrastructure to a convinced adherence to ESG principles. Let's look at each of these areas of action in detail.