Corporate banking risk management could reflect OECD predictions

The corporate banking sector in the G7 countries could take heed from a new report that has said gross domestic product (GDP) in the US is likely to grow faster than the three largest euro area countries.

GDP in France, Germany and Italy will not grow as quickly as that of the US, the Organisation for Economic Co-operation and Development (OECD) said.

Such expectations could shape investments made within the corporate banking sector and risks taken.

US GDP is expected to rise by 2.4 per cent in the first quarter of this year and 2.3 per cent during the second.

This outstrips the predicted GDP growth of Japan, which is forecast a 1.1 per cent rise in the first and 2.3 per cent in the second.

’Although we are seeing some encouraging signs of stronger activity, the fragility of the recovery, a frail labour market and possible headwinds coming from financial markets underscore the need for caution in the removal of policy support,’ stated OECD chief economist Pier Carlo Padoan.

Last year the OECD published a report about the governance of corporate banking in the Middle East and North Africa.

It noted the recession had highlighted the importance of strengthened risk management procedures.ADNFCR-2318-ID-19710025-ADNFCR