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ECONOMY: The Geopolitical impact on Global Banking and Finance ...

ECONOMY: The Geopolitical impact on Global Banking & Financial Institutions
ECONOMY: The Geopolitical impact on Global Banking & Financial Institutions
By: Andrew Lawrence - GEO´ News Team
City of London Newsroom


Recent analysis conducted by the Organisation for Economic Co-operation and Development
(OECD) [https://www.oecd.org/about/] that recently featured in The Guardian clearly indicates that a “no-deal Brexit” situation—in which the UK would withdraw from the European Union without any trade deals, which is looking increasingly likely, in place—stands to cut UK economic growth by 3 per cent over the next three years, compared with 0.6 per cent in the rest of the EU. Not surprisingly, this is information that every bank, finance house and investment company needs.

But what of the political news in other regions, areas that may offer new business and expansion opportunities? In many ways, geopolitical issues are just as important as local economic trends. For example, banks looking to do business in the US need to be aware of its debt ceiling and the potential impact on trade due to the upcoming US presidential elections.

Without this knowledge, businesses may find themselves unprepared to protect their customers, their employees, and their brands.

According to a recent report by financial heavyweights J.P. Morgan, geopolitical risk is on the rise. From trade negotiations between the US and China to Venezuela’s economic crisis, businesses everywhere are struggling to stay abreast of emerging events in the face of geopolitical volatility and uncertainty, which in turn has a fundamental impact on world markets and international trade.

“Financial markets around the world are increasingly being pushed and pulled by geopolitical dynamics,”J.P. Morgan reports. Such events put financial companies in the awkward position of having to anticipate change in an unfamiliar and increasingly unstable political landscape. And when a company is new to a region as a result of corporate expansion, understanding the market is paramount.

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