It has been a decade on since the Global Recession in 2008 that was followed by the Eurozone’s sovereign debt crisis. A study was conducted by management consulting giant McKinsey to understand the impact. A lot of new learnings have emerged, while a lot of familial old failings continue unabated. The global debt for example continues to grow, with borrowers merely being replaced by newer ones. Banks are now much safer to keep one’s money in, but less profitable. Digital disruptions have no doubt played their part in this. Households have indeed reduced their individual debt, but the condition isn’t all that better either. The global financial system is less connected than it was a decade back, which means the chances of a contagion have somewhat been reduced. New risks are bound to emerge, not least being China’s rise amidst a cycle of growth amidst debt.

Source:https://www.mckinsey.com/industries/financial-services/our-insights/a-decade-after-the-global-financial-crisis-what-has-and-hasnt-changed?cid=other-soc-twi-mgi-mgi-oth-1808

Uploaded Date:01 September 2018